Tin Pot Toddlers Are a Profit Opportunity

Russia’s invasion of Ukraine has largely been a failure. 

It’s cost thousands of lives, tanked the Russian economy, exposed the Russian military as a paper tiger, spurred political unrest at home, and alienated the country abroad.

But it has been successful in one way…

It’s shown that even a second- or third-rate power can upset the global order. If nothing else, it’s been a demonstration of defiance — against the United States and its Western allies, and the rules they’ve set out and are desperately trying to enforce.

In that sense, Vladimir Putin is a role model for tin pot dictators who don’t see things the way the West does.

Dictators around the world are watching Russia lash out, and it’s giving them ideas.

This week, Kim Jong-Un fired dozens of ballistic missiles and more than 100 rounds of artillery into the ocean adjacent to South Korea, sending its neighbor's citizens scrambling to underground shelters.

North Korea has also been sending artillery shells to Russia on the sly to help support its invasion there.

And it conducted yet another intercontinental ballistic missile test. The ICBM test seems to have failed but it’s more evidence of the country’s determination to develop a missile capable of hitting the United States.

Furthermore, Kim has also been discussing the potential deployment of “tactical” nuclear weapons, mirroring similar threats from Putin.

Kim and his predecessors have always had a flair for the dramatic, but this is different. It’s a clear escalation that’s likely the result of unrest or paranoia within the regime.

And it’s gotten bad enough that the United States is convening a meeting of the U.N. Security Council to discuss the situation as we speak.

Think about that. 

We’ve got an unstable autocrat invading Ukraine and threatening the world at large with nukes — and he’s not the only problem. 

We’ve got to deal with this too. 

And not just this but still more problems in the Middle East.

Because also this week, Saudi Arabia and the United States uncovered intel on a potential attack by Iran.

Such an attack would likely target energy infrastructure or potentially the Iraqi city of Erbil where American troops are currently stationed.

It would be exquisite timing for Iran, which has been besieged by protests over its abysmal treatment of women. Those protests — widespread, persistent, and often violent — have snowballed into a larger call for regime change that now threatens the ayatollah and his fundamentalist government.

More than 200 people have been killed and over 1,000 arrested in response to the protests, so a shift in focus would certainly be welcomed by the Islamic Republic of Iran.

Of course, there are other axes to grind as well.

Earlier this week, Ayatollah Ali Khamenei said his government has not forgotten the U.S. assassination of Gen. Qassim Soleimani in 2020. He had to reach back two years to find that bloody shirt deep in the back of the closet.

It’s also possible that Iran is sensing an opportunity in the rising tensions between the U.S. and Saudi Arabia as well. Just last month, Riyadh spurned calls from the Biden administration to raise oil production to help ease global energy prices, leading to a reassessment of the U.S. relationship with our so-called ally.

But again, Russia’s menacing factors in as well. It’s an exercise in solidarity — or perhaps the likes of North Korea and Iran simply feel like they aren’t getting the kind of attention they used to and that they’re being overshadowed by Russia. 

It’s like a group of toddlers throwing competing tantrums.

Unfortunately, in this case, the toddlers are armed. 

And this is why, as an investor, analyst, and all-around poli-sci nerd, I focus so much on defense contractors and security stocks. 

It’s because the world is a crazy, chaotic, and dangerous place, and it’s only getting worse. 

So if you want to safeguard yourself or, even better, profit handsomely from these kinds of conflicts…

You should check out my Wall Street’s Proving Ground and Secret Stock Files investment services. 

These newsletters cover all of the latest cutting-edge war-fighting technology as well as some of their more practical civilian applications. 

I’m talking about everything from hypersonic weapons to artificial intelligence to cyber and satellite weapons. 

My latest report on hypersonics, in particular, is a must-read, so check that out here if you haven’t already.

Fight on,

Jason Simpkins

@OCSimpkins on Twitter

Jason Simpkins is Assistant Managing Editor of the Outsider Club and Investment Director of Wall Street's Proving Ground, a financial advisory focused on security companies and defense contractors. For more on Jason, check out his editor's page. 

*Follow Outsider Club on Facebook and Twitter.