$10,000 Invested in Defense Stocks When Afghanistan War Began Now Worth Almost $100,000
Key Excerpts from Article on Website of The Intercept
Posted: August 22nd, 2021
If you purchased $10,000 of stock evenly divided among America’s top five defense contractors on September 18, 2001 — the day President George W. Bush signed the Authorization for Use of Military Force in response to the 9/11 terrorist attacks — and faithfully reinvested all dividends, it would now be worth $97,295. This is a far greater return than was available in the overall stock market over the same period. $10,000 invested in an S&P 500 index fund on September 18, 2001, would now be worth $61,613. That is, defense stocks outperformed the stock market overall by 58 percent during the Afghanistan War. Moreover, given that the top five biggest defense contractors — Boeing, Raytheon, Lockheed Martin, Northrop Grumman, and General Dynamics — are of course part of the S&P 500, the remaining firms had lower returns than the overall S&P returns. These numbers suggest that it is incorrect to conclude that the Taliban’s immediate takeover of Afghanistan upon the U.S.’s departure means that the Afghanistan War was a failure. On the contrary, from the perspective of some of the most powerful people in the U.S., it may have been an extraordinary success. Notably, the boards of directors of all five defense contractors include retired top-level military officers. Several commentators address this dynamic in the 2005 documentary “Why We Fight.” Former CIA contractor and academic Chalmers Johnson states, “I guarantee you, when war becomes that profitable, you’re going to see more of it.”
Note: Wartime profiteering is an old game. Read decorated general Smedley Butler's 1935 book War is a Racket to see how little has changed. For more along these lines, see concise summaries of deeply revealing news articles on war from reliable major media sources.