Buy Raytheon RTN

I am buying Raytheon (RTN) on Monday morning.  This is the company which makes the Tomahawk missiles that were fired at Syria this past week.  According to one article that I read, the 59 missiles cost more than 1.5 million each, and the Department of Defense paid 93 million dollars for the missiles that were used.  There is probably a 100% possibility that the missiles will be replaced sending up the earnings of Raytheon.

Moreover, RTN has steadily risen in price over the past year from $124 to $152.  That is a gain of 22%.  How many other companies do you know gained 22% in the past year?  Trump has also signaled that cruise missiles might be used again in Syria, and we have the problem of North Korea as well.  This is one of the few predictable stocks that I see in the stock market today.  Finally, if you buy on Monday, you will get in before the ex-dividend day of April 10.  And the dividend will most likely pay for your commission cost if you buy 10 shares or more.

Bull or Bear

Around ten days ago, I blogged that stocks were going into a pullback although I did not know the extent of it.  That may still be true, but I want to clarify that we are in a long-term bullish trend.  If a large pullback occurs, it should become a buying opportunity for quality stocks and ETFs.

Chris Ciovacco has written an excellent article here about this bullish situation.  He presented excellent charts to show that 2017 is nowhere near the bearish trend of 2008.  He used 100, 200, and 300 day lines to reveal whether we are in a long term bull or bear market.  By paying attention to information like this, we will not get whip-sawed by stock market volatility.