Since the presidency of Eisenhower in the 1950s, NATO has been demilitarizing and cutting budget. US account for the largest budgeting of 3.4% while all others are not up to the standard of 2%.
In 1990s, after the collapse of Soviet Union, the Warsaw Treaty no longer existed. NATO comes to another scenario of demilitarizing, for they have no strong enemy. They cut number of people concerned, cut the budget and weapons. In the era of Trump 1.0, it made him angry that every country relies upon US only, and they do nothing on defense. Most of them are not up to the standard of 2.0%. But Putin said NATO was expanding and giving threat to Russia thus started war against Ukraine. Actually, if he is in afraid of NATO, Russia can have a new Treaty with the BRICS or China and Belt and Road countries to form a new defense group, of course unsuccessful.
In the era of Trump 2.0, his policies is not to fight for a war so far away from US. Thus requested NATO countries to upgrade their budget to 5%, out of which 3.5% directly on buying weapons, 1.5% on back up service just like electricity power and highway systems. He succeeded! He won!
Why so many presidents since Eisenhower could not do this and Trump can?
Because of the Operation Midnight Hammer! Because of the GBU-57 MOP. B2 stealth fighter has been in service since 1997. The MOP came into service in 2012 and in 2025 came into actual war use. It started a new page in war, and traditional military stocks LMT and BA are just so and so. Better aim at PLTR, DXYZ and related semiconductor stocks like NVDA, TSM, AVGO.
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.