Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

The Boeing Company (BA), Lockheed Martin Corporation (LMT): Is North Korea’s Latest Missile Progress a Serious Threat to America?

“These advances in ballistic-missile delivery systems, coupled with developments in nuclear technology … are in line with North Korea’s stated objective of being able to strike the U.S. homeland.”

That report from the Pentagon brings some chilling news: North Korea is getting closer to its goal of building a nuclear missile capable of reaching the continental United States. Although the report didn’t give an exact time of when such a threat would come online, it did say it could happen “soon.”

While that news sounds ominous, is it really something America should be concerned about? In the grand scheme of things, is North Korea a serious threat, or simply a boon for defense contractors and their stocks?

Source: David Shankbone, via Wikimedia Commons.

The tantrum heard ’round the world
North Korea hasn’t been on good terms with America for some time, but the tension that was already there skyrocketed in December, when North Korea launched a satellite into space — proof that North Korea was actively pursuing long-range missile capabilities.

Following the launch, and the resulting sanctions from the United Nations, North Korea’s leader, Kim Jong-un, grew more belligerent by responding to increased sanctions with escalating threats, including promises to destroy America and South Korea.

Understandably, South Korea responded by purchasing 30 attack helicopters from The Boeing Company (NYSE:BA); actively pursuing fighter-jet options from Lockheed Martin Corporation (NYSE:LMT), BAE Systems PLC (ADR) (OTCBB:BAESY), and The Boeing Company (NYSE:BA); and carrying out military drills, despite protests from North Korea.

A barking Chihuahua?
Yes, the threats from North Korea sound bad, and South Korea’s response makes it sound as if an out-and-out war could break out any second — and that’s partly true; reason and sanity aren’t exactly Kim’s strong suit. But how likely is it that such an attack would prove serious to America? Not very, I’d argue. North Korea’s pursuit of a nuclear weapon is a threat; don’t get me wrong, but America has been armed with nukes for years.

Moreover, thanks to Northrop Grumman Corporation (NYSE:NOC)‘s Global Hawk, Boeing’s Ground-Based Interceptors, Raytheon Company (NYSE:RTN)‘s SM-3 defense system, and Lockheed Martin Corporation (NYSE:LMT)’s Aegis Missile Defense System, America’s powerhouse of missile technology would be pitted against a nation that’s still learning how to fire a rocket — think of it as a Chihuahua trying to fight a German shepherd: One bite, and the Chihuahua’s a goner.

So what’s the big deal?
The idea that North Korea could destroy America is laughable, but that doesn’t mean the threats should go unchecked. South Korea’s military prowess, although superior to North Korea’s, is not on the same level with the United States. More importantly, a war between the two countries wouldn’t be pretty.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.