The Halo Effect on the Old Guard
Then there is the old guard of the aerospace industry.
Lockheed Martin is deeply entrenched in the less glamorous, highly lucrative plumbing of the space economy. When retail money blindly chases space exploration, seasoned giants often enjoy a sudden, unearned glow. Analysts call this a valuation halo effect. I call it proximity to the hype.
Yet, Lockheed is a sprawling, complicated beast. Its fortunes are tied to ossified government budgets and geopolitical conflicts, not just to the commercial space race. Sector-wide enthusiasm might temporarily lift all boats, but it is defence spending that dictates whether they stay afloat.