The Obama administration and the Pentagon are taking the threats from North Korea and Iran seriously. Along with Lockheed Martin Corporation (NYSE:LMT), this is welcome news for Northrop Grumman Corporation (NYSE:NOC) , the prime contractor on the Missile Defense Agency’s Joint National Integration Center, a simulating and war-gaming center that provides answers for America’s missile defense capabilities. It’s also good news for The Boeing Company (NYSE:BA) , which makes ground-based interceptors — our first line of defense against missiles — and for Raytheon Company (NYSE:RTN) , which builds the SM-3, a defense weapon used to destroy incoming ballistic missiles.
Kim Jong-un isn’t backing down, and what he’ll do in the future is anyone’s guess. Luckily, America has the ability to defend itself and is increasing its ability to counter further threats. We can hope that’ll be enough to persuade North Korea not to fire at America. But in the meantime, the emphasis on increased defense capabilities is welcome news for defense contractors, and it shows, once again, why they’re essential and great long-term investments.
The article Obama Steps Up to the Plate Against North Korea’s Nuclear Threats originally appeared on Fool.com and is written by Katie Spence.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.