Two days ago, the Pentagon handed the keys to the builders, the doers, the action takers, and the movers.
Now, most people scroll right by. But I think it’s one of the biggest investing stories of the decade, maybe the century.
What if you could throw out all your charts and never check a trendline again?
Image created with Google Gemini
Table of Contents
The Big Picture
On Wednesday, Secretary of War Pete Hegseth stood in front of a crowd of active-duty officers at Quantico and said this:
“Drone warfare supercharged by superintelligence-enabled targeting is the biggest battlefield revolution in generations.”
Hegseth also announced Project Meridian, a 120-day sprint to map the future of warfare.
Who’s leading it?
SpaceX (NASDAQ: SPCX) CEO Elon Musk and Anduril Industries founder Palmer Luckey. Former House Speaker Newt Gingrich is involved, too.
Now, I don’t know about that last pick, but Elon and Palmer are probably my two main man crushes.
The goal of Project Meridian is to discover and develop weapons systems of the future “without creative limitations or restrictions on any future battlefield from under the Earth to beyond the moon.”
During the same speech, he also announced a brand-new Autonomous Warfare command. Its entire job is to scale drones and robots across the military.
The Deterrence of Production
I’m currently reading “Mobilize: How to Reboot the American Industrial Base and Stop World War III” by Palantir (NASDAQ: PLTR) CEO Shyam Sankar.
One stat floored me:
In World War II, the US Navy commissioned and built 151 carriers. Two of the three Axis powers never finished one.
Then we blew it. After the war, we spent decades shipping our factories overseas.
In other words, we lost the deterrence of production. Not anymore.
America Is Making a Defense Technology Comeback
I’ve been saying this for about a year and a half:
Some of the best IPOs of the next decade are going to come out of defense tech.
Listen, Anduril builds drones by the thousands. Another private company, Saronic Technologies, builds autonomous warships.
There’s also a whole cluster of companies based in El Segundo, CA (where SpaceX started) focused on a wide array of defense tech from robots to hypersonic missiles and space-based manufacturing.
Most people have never heard of any of these companies. They soon will.
My Take
When these companies start to IPO, remember the lessons of SpaceX, okay? Don’t just buy randomly. The first day of the IPO is for tourists.
Now, if you followed my plan on SpaceX, you waited for the chart to firm up and took the second leg. Look where the chart is now.
Watchlist
From a big picture view, how do you not absolutely love SPCX? I’ve already said that I think it’s going to be the greatest company of my lifetime, if not history.
SPCX, daily candles, IPO to present
We see this nonstop news flow and innovation from SpaceX, and it captures people’s attention.
If you think about the parallels to:
- The post-war boom
- The space race
- The military buildup…
There’s just so much innovation based around rockets, AI, and military tech. And that was all clear BEFORE Pete Hegseth’s speech the other day.
SPCX has found resistance in the $155–$160 area. Wait until it breaks out of the range, but when it does, here we go.
On My Radar
- Genius move by United Airlines (NASDAQ: UAL)
- We live in a Golden Age
- Since I dropped a little Ayn Rand reference, “Atlas Shrugged” is a must-read for every trader
- Today is your last chance to secure your free ticket to the Millionaire Formula Conference by 1:30PM ET