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Monday, April 28th
“We are going to have peace even if we have to fight for it.”
-Dwight D. Eisenhower
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Markets Today
🌏 Asia-Pacific: Mixed
🇪🇺 Europe: Up
🇺🇸 United States: Up
🛢️ Oil: Down
⚡Crypto: Up
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Major Market Events
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Domino’s posts surprise fall in US same-store sales as inflation bites
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US shoppers pay for Trump tariffs on Temu, doubling some prices
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IBM to invest $150 billion in US over next five years
🤔 My Thoughts
We’ve been covering this for a while…
But it’s an important trend – the remilitarization of Europe.
As the Trump administration pulls back foreign military aid and renegotiates the American relationship with the world…
Europe is starting to pay for their own defense, and that’s good news for European defense companies.
According to a report from Bloomberg, big money private equity firms are rushing into the space.
Firms like Tikehau Capital and CVC Capital Partners are diving into the defense sector big time. They’re either raising cash or building teams to invest in companies that boost national security. Meanwhile, folks like Advent are getting ready to sell off defense assets since buyers are super interested right now.
It’s a huge shift. Europe’s pouring billions into beefing up its defenses and relying less on the US. Plus, the defense industry’s reputation is changing—it used to be a tough sell for investors because it’s pricey, up-and-down, and tied to the ethics of war.
Private equity has only hit $1 billion on defense deals five times in the last 20 years, according to Bloomberg’s data. But in 2025 alone, investors have already dropped $790 million, and there’s talk of even bigger deals coming. For example, Bain Capital and KPS Capital are eyeing Iveco Group’s defense unit, which could go for as much as €1.5 billion—that’s $1.7 billion in patriot dollars.
A specific stock to watch:
OTCMKTS: RNMBY
Rheinmetall AG, a German defense company, is well-positioned to benefit from Europe’s remilitarization. As a leading supplier of armored vehicles, artillery systems, and ammunition,
Rheinmetall has seen its stock surge over 87% year-to-date in 2025, driven by increased European defense spending. Germany’s push for a €100 billion defense budget increase and the EU’s $860 billion “ReArm Europe Plan” signal robust demand for Rheinmetall’s products, including its Leopard 2 tanks and infantry systems. The company reported a 40% expected sales jump in 2025, with record-breaking orders from NATO and Ukraine.
