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3) General Dynamics

Cyber security is the new frontier for government defense contractors. As spending on the machines of war becomes unjustifiable in budgets after the end of the Iraq War and the coming end of the American involvement in the war in Afghanistan, focus of government defense spending is changing to cyber security. General Dynamics (GD) has just won a contract with the Navy to protect its networks from cyber-attacks. You can see on my relative strength chart that GD has been making up lost ground on the S&P 500 since May this year. Buy.

General Dynamics vs. S&P 500

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