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During periods of economic uncertainty, defense and aerospace stocks may offer reliability because a portion of their profits are often tied to long-term government contracts. Defense stocks also tend to get a boost during periods of war and conflict.
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Defense stocks stand out for their steady growth and generous dividends that may provide reliability during periods of economic uncertainty. If you’re only getting started trading stocks or you’re looking to build a strong foundation for your portfolio, consider whether defense stocks should have a place in your portfolio.
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