Avelis Bonilla-Ramos

Sure, Caroline.

Thanks so much for having me.

And yes, political developments are definitely a major driver of this sentiment.

You know, the rally is driven by expectations that the sustained increases and global defense spending, this geopolitical instability, shifting alliances, ongoing conflicts are going to sort of like

know boost more this rally and continue this rally and then these earnings this week are going to be really a test to what can actually happen um and you know the aerospace and defense stocks index um is rising or rose about 42 percent last year uh you know pacing a little bit of the broader market analysts are concerned about certain things you know these stocks are um

in the political crosshairs, just to put it that way.

Definitely.

And then the other concern is, yeah, sorry.

Sure.

I mean, the investor confidence right now, and that's very interesting, but the investor confidence right now in Momentum is sort of like these companies are growing a little bit faster than what they...

the sort of like classic thought about or behind this defense stocks usually is or was.

Because a lot of these companies are moving into the technology play.

There's a lot, you know, modern warfare is increasing.

There's more reliance on drones, on AI, on advanced sensors, software, missile defense systems.

So once all these companies are sort of like tapping into that, investors continue to be a little bit more positive on this side.

Microsoft, Meta, Alphabet, they are just committing billions and billions of dollars to capital expenditures.

Yeah, so I think the thing that's most important or interesting to watch here is how, you know, a year ago, this deep-seek news came out and Nvidia sold off, you know, almost $600 billion in market value was erased in one day.

Exactly.

Really the biggest thing I think that investors are watching in these big tech earnings that we're seeing over the next few weeks is that CapEx line item.

Are these companies continuing to grow or say that they're going to spend even more?