For months, I’ve been reading and watching press reports about the violence that’s consumed the Middle East.
And for months, reporters have alluded to “fears that the conflict will escalate.”
“Will it escalate?” they ask in the wake of each fresh outburst of violence.
Well, guys, I’ve got news for you, it’s escalated all right. It’s been escalating for months.
The United States is in this. We have been from the start. And rather than extricating ourselves from the situation, we’re wading in even further.
What began with political cover, monetary support, and security assistance has snowballed into bombing runs and counter-terrorism missions.
Last week, President Biden said the missile strikes in Yemen will continue despite their apparent ineffectiveness.
“Well, when you say ‘working,’ are they stopping the Houthis? No,” he said. “Are they going to continue? Yes.”
That was Friday after the U.S. military attacked Houthi positions in Yemen for the sixth time in seven days.
However, it’s not really clear what the objective is.
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Is it to destroy the Houthis? To eliminate their bases? To stop them from assailing ships in the Red Sea and Gulf of Aden?
If so, it’s not working as Biden himself admitted.
They’ve really only served to escalate (there’s that word again!) the conflict.
The Houthis have pledged to retaliate against U.S. assets. And over the weekend, they launched two anti-ship ballistic missiles at an American chemical tanker. Fortunately, they missed.
However, that doesn’t mean we’ve gotten off scot-free.
Two Navy SEALs who went missing during an interdiction mission on January 11 and are now presumed dead following a failed search and rescue operation.
The two servicemen were taking part in a nighttime boarding mission of a ship suspected of carrying Iranian-made weapons for Houthi militants in Yemen.
However, one member of the squad fell into the rough waters and a second dove in to rescue him. Neither returned.
Still, the rest of the SEAL team carried out the interdiction, seizing ballistic and cruise missile parts and warheads.
In that sense, the mission was successful, but it’s not going to permanently sever the link between Iran and its proxy groups. On the contrary, it will only be used to justify more retaliation.
Furthermore, it’s Israel that remains the fulcrum of this conflict. The embattled country has laid the groundwork for a long-term or even permanent presence in the Gaza Strip — potentially even an attempt to annex the territory entirely and fully expel or exterminate the Palestinian population.
Not only that, but Israel is increasingly branching out in response to threats in Lebanon and Syria to the north.
The IDF conducted a missile strike on a building in Damascus over the weekend, killing five Iranian military advisers and a number of Syrian forces.
In response, Iranian President Ebrahim Raisi vowed to “punish” Israel for the strike calling it “violated Syria’s airspace and trampled on human and international laws.”
So I think it’s fair to say the situation has “escalated.” And it’s going to get worse before it gets better.
That’s why smart investors will do what I’ve been calling on them to do for the past six years and lean into the chaos by investing in the defense sector.
As I always say, the world is getting more dangerous — not less so.
And if you really want to protect your wealth and maximize your profits, you should check out Secret Stock Files — a stock trading service that focuses exclusively on defense tech.
Check that out here if you haven’t already.
Fight on, Jason Simpkins Simpkins is the founder and editor of Secret Stock Files, an investment service that focuses on companies with assets — tangible resources and products that can hold and appreciate in value. He covers mining companies, energy companies, defense contractors, dividend payers, commodities, staples, legacies and more… In 2023 he joined The Wealth Advisory team as a defense market analyst where he reviews and recommends new military and government opportunities that come across his radar, especially those that spin-off healthy, growing income streams. For more on Jason, check out his editor’s page. Be sure to visit our Angel Investment Research channel on YouTube and tune into Jason’s podcasts. Want to hear more from Jason? Sign up to receive emails directly from him ranging from market commentaries to opportunities that he has his eye on. 
