The Federal Reserve has chosen to keep interest rates steady, largely due to persistent inflation worsened by the U.S.-Israeli war with Iran and soaring gas prices. This creates a compelling case for investors to consider domestic oil producers and defense contractors, which often thrive during periods of geopolitical instability and supply constraints.
Published on March 19
When global oil supply is disrupted by conflict, domestic producers don't just survive — they benefit. With gas prices surging, the energy stocks in this group are right in the middle of a major tailwind.
Escalating international conflict means governments are spending more on military systems, advanced weapons, and national security. The defence contractors in this group are directly in line to receive that spending.
Professional analysts specifically curated this basket to reflect the dual pressures of restrictive monetary policy and geopolitical instability — two of the biggest forces shaping markets right now. This isn't a coincidence; it's a strategy.
The Federal Reserve has held interest rates steady at 3.5%–3.75%, citing persistent inflation and rising geopolitical tensions from the U.S.-Israeli conflict with Iran. When borrowing costs stay high and energy prices surge, most companies feel the squeeze — but domestic oil producers and defence contractors often move in the opposite direction. This basket is built around that dynamic, targeting sectors that can remain resilient — or even grow — precisely when the broader market is under pressure.
This group sits across two distinct sectors: domestic energy production and aerospace and military defence. Both tend to perform well during geopolitical instability and supply disruptions. Energy companies benefit from higher oil and gas prices, while defence contractors often see increased government spending during periods of conflict. These are considered more defensive investments, meaning they may hold their value better than growth stocks when economic conditions are uncertain.
Every stock in this group was hand-picked by professional analysts based on a clear investment rationale — each one is either a key domestic energy producer operating in major US basins or a leading defence contractor supplying advanced military and security systems. They were selected because of their direct exposure to the macroeconomic forces at play right now: a paused rate cycle, elevated energy prices, and rising global defence budgets. Nothing here was chosen at random.
This basket's total market capitalisation is $932.75B; its top-weighted large-cap positions are likely to anchor the basket's size and stability.
COP: $151.14B
LMT: $147.78B
RTX: $275.33B
Get the full story on this Basket. Read our detailed article on its risks and potential.
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Disney is suing the FCC to block an early license review of its ABC stations, arguing the move is politically motivated retaliation against its news coverage. This unprecedented legal battle highlights the growing regulatory risks for traditional broadcasters and underscores the structural advantages of unregulated digital streaming platforms.
SK Hynix has unveiled a record-breaking 40 trillion won share buyback fueled by soaring demand for its AI memory chips. This historic capital return creates a compelling investment theme centered on high-bandwidth memory producers and the specialized equipment manufacturers that enable their advanced production.
Home Depot's recent earnings beat highlights consistent consumer spending on smaller household repair and maintenance projects. This ongoing trend presents promising opportunities for various home improvement retailers and building material suppliers.
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Conoco Phillips
COP
Current Price
$132.61
ConocoPhillips is a leading exploration and production company heavily invested in the US Lower 48, making it a strong play for domestic energy securi...
ConocoPhillips is a leading exploration and production company heavily invested in the US Lower 48, making it a strong play for domestic energy security.
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On average, analysts expect assets in this group to grow 13.93% over the next year.
14 of 15 assets in this group are rated Buy by professional analysts.
Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.
If you invested across these assets:
In 12 months it might be worth:
+13.93%
