Key Takeaways
- Historical data shows the S&P 500 usually rises during major conflicts after an initial shock.
- Defense giants like Lockheed Martin and Northrop Grumman offer stability through massive order backlogs.
- Gold and Treasuries remain the top safe-haven assets for capital preservation in 2026.
Geopolitical tensions are high right now, and if you're looking at your portfolio with a bit of sweat on your brow, you aren't alone. (And let's be honest, who isn't?) Investing During Wartime: How Historical Conflicts Shape Market Performance and Strategy is a topic that feels heavy, but history actually tells a much more optimistic story than the nightly news.
While the initial shock of conflict often sends stocks into a tailspin, the long-term recovery is usually swift and powerful. Below, we'll break down how you'll position your money in 2026 to stay safe while still capturing growth. Sound familiar?
Note: This article is for educational purposes only and is not financial advice. We recommend consulting a qualified financial advisor before making investment decisions.
| Product | Best For | Key Feature | Rating |
|---|---|---|---|
| Lockheed Martin (LMT) | Pure Defense Exposure | $194B Order Backlog | 4.8/5 |
| SPDR Gold Shares (GLD) | Safe Haven Asset | Physical Gold Backing | 4.6/5 |
| CrowdStrike (CRWD) | Cyber Warfare Protection | 24% ARR Growth | 4.5/5 |
| Vanguard Intermediate-Term Treasury ETF (VGIT) | Capital Preservation | 3.87% SEC Yield | 4.2/5 |
| Energy Select Sector SPDR Fund (XLE) | Inflation & Oil Hedge | High Dividend Yield | 4.3/5 |
1. Lockheed Martin (LMT)
Last Updated: April 18, 2026
When you think about defense, Lockheed Martin is usually the first name that pops up, and for good reason. It's the king of the mountain in the aerospace world. Right now in 2026, Lockheed is sitting on a massive $194 billion backlog. That’s basically guaranteed work for years to come, regardless of what the broader economy does.
Their F-35 program is basically a money-printing machine at this point, with nations all over the globe lining up to buy these jets. If you’re looking for a stock that thrives when defense budgets expand, this is your primary candidate.
Why It Works in 2026
The numbers here are hard to ignore. Lockheed is currently paying out an annual dividend of $13.80 per share, which gives you a yield of about 2.25%. That might not sound like a lot compared to a high-yield savings account, but you're getting that yield on top of a company that grows its payout like clockwork.
They’ve raised that dividend for nearly 20 years straight. In 2026, they’re expected to generate between $6.5 billion and $6.8 billion in free cash flow. That’s a lot of cash to buy back shares and keep those dividends coming into your account. Plus, with the current P/E ratio hovering around 18, it isn't wildly overpriced compared to the tech giants.
The catch? Defense stocks are politically sensitive. If there’s a sudden shift toward global de-escalation, these stocks can take a breather. But let’s be real: the world isn't getting any quieter. Simple as that.
Lockheed’s focus on missile defense systems like PAC-3 and THAAD means they are key to the security of the U.S. and its allies. Our pick is LMT because it offers the most direct exposure to the hardware of modern conflict while paying you to wait for the next contract win.
2. SPDR Gold Shares (GLD)
Gold has been the ultimate "panic button" for centuries. When the world feels like it's falling apart, people want something they can hold.
While you could buy physical bars and hide them under your mattress (not that we recommend it), the SPDR Gold Shares (GLD) is a much easier way to play the game. It tracks the price of gold bullion held in London vaults. As we move through 2026, gold has been on a tear, with some analysts at J.P. Morgan and Goldman Sachs predicting prices could hit $3,000 or even $3,100 per ounce by the end of the year. That’s a significant jump from where we started. For your peace of mind.
The Role of Gold in Your Portfolio
The beauty of GLD is liquidity. You can sell it in seconds during market hours, which you definitely can't do with a gold coin at a local pawn shop. In times of war, currencies often get shaky.
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