Chart of the Day: The Military-Industrial Complex is Not Worried

Via Tyler Cowen, here’s a chart from Sober Look that tracks the price of a basket of defense stocks—the iShares defense industry ETF—since the beginning of the year. The index underperformed the market for a bit during February, but it’s fully caught up since then. “Just like the public at large,” says SL, “investors now believe the sequester law will be reversed in short order. US aerospace and defense shares have rallied to outperform the S&P500.”

This is a bit mysterious though. It’s obviously true that investors are sanguine, but I’m sure not seeing any reason for it, at least not in the short term. The defense cuts might be reversed during the next budget cycle, but there seems little chance of the sequester being renegotiated for FY2013. Is this all that investors care about? Or am I missing something?


In 2014, before Donald Trump announced his run for president, we knew we had to do something different to address the fundamental challenge facing journalism: how hard-hitting reporting that can hold the powerful accountable can survive as the bottom falls out of the news business.

Being a nonprofit, we started planning The Moment for Mother Jones, a special campaign to raise $25 million for key investments to make Mother Jones the strongest watchdog it can be. Five years later, readers have stepped up and contributed an astonishing $23 million in gifts and future pledges. This is an incredible statement from the Mother Jones community in the face of huge threats—both economic and political—against the free press.

Read more about The Moment and see what we've been able to accomplish thanks to readers' incredible generosity so far, and please join them today. Your gift will be matched dollar for dollar, up to $500,000 total, during this critical moment for journalism.

We Recommend


Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.


Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.


We have a new comment system! We are now using Coral, from Vox Media, for comments on all new articles. We'd love your feedback.