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A Defensive Trade

Operation “Odyssey Dawn”, the UN sanctioned (Resolution 1973) No-Fly Zone restriction mission, is now underway over the skies of Libya.

Military assets, already on operational standby in the region, are now activated for ongoing saturation coverage of both Libyan air defense and air force related targets.

On The Market Front

The listed military industrial sector performed remarkably well in 2011 against broad benchmark index volatility due to North African uncertainties, oil price variance, nuclear catastrophes and Tsunami inducing earthquakes.

Explosive Expense Accounts

The charts below present the performance of sector leaders across North-American and European markets. Just as an aside, the Tomahawk® missile, manufactured by the Boeing (BA:US) and Raytheon (RMT:US) companies, come with a $569,000 unit cost (FY99 $). 110 missiles were launched during the opening phase of operations.

US Military Industrials Compared to S&P500

TheWarTrade-LMT-RTN-NOC-BA-vs-SP500

Lockheed Martin (LMT:US), The Raytheon Company (RTN:US), Northrop Grumman Corporation (NOC:US) and The Boeing Company (BA:US) versus YTD S&P500.

European Military Industrials Compared to EuroStoxx50

TheWarTrade_EADS-Dassault-Vs-EuroStoxx50

EADS (EADS:IX) and Dassault Aviation (AM:FP) vs EuroStoxx 50.

Asset Freeze

Also worthy of note is Resolution 1973’s continuation of resolution 1970’s efforts at both freezing and limiting the range of movements for the following economic individuals and entities:

UN_SecurityCouncilResolution1973-Annex1

Annex 1 to the United Nations Security Council Resolution 1973

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