Defense and aerospace companies can be underrated long-term investments. A handful of power players dominate the industry, enjoying competitive advantages thanks to their constant innovation, deep pockets, and strong ties to the U.S. government and its allies.

They also benefit from the fact that America faces numerous (and varied) threats. At the moment, war and lesser conflicts are taking place in Europe and the Middle East. Meanwhile, emerging national economies (like those in BRICS) have created economic pressure on Western countries like the United States, which has long had tense relationships with some Eastern powers.

The unfortunate reality is that America's strength protects America but it also creates global tension, which means that defense spending will likely be a priority for the U.S. government for the foreseeable future:

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Source Fool.com