The winners from US military campaigns in terms of profit are not only arms
manufacturers, but also companies manufacturing the materials from which the
arms are made. Carpenter Technology Corporation manufactures stainless steel,
titanium, and special metal alloys, a large proportion of which is supplied to the
defense and aerospace industries in the US. Unwavering tensions in the Middle
East is facilitating a rise in military presence of NATO countries in the region. The
US is actively trying to increase other NATO member states’ military expenditure
in line with previous agreements. A growth in demand for American military
equipment comes not only from the US, but also from other countries, thus
facilitating share price growth for the company. At the present moment in time,
the US is the largest exporter of arms in the world (with a share of over 50% of
the global arms market).
Investment period ends: 16/06/2017
Expected yield is calculated according to 95% capital protection and the price of the base asset at expiry, equal to 69 USD.
Carpenter Technology’s share price is close to the lower limit of the long-term upward trend channel (beginning in 2003). The share price has headed up out of the cloud of the Ichimoku indicator (Senkou B > Senkou A) and has broken upwards through the 200 daily moving average.