Rob Spivey: He Found Six Small Defense Stocks Positioned for the Coming Spending Spree

In this week's Stansberry Investor Hour, Dan welcomes Rob Spivey back to the show. Rob is the director of research at our corporate affiliate Altimetry. He and his team utilize their proprietary Uniform Accounting strategy to dig through the as-reported numbers in company reports to find their true value.   Rob kicks things off by providing a deep dive into Altimetry's Defense Gold Rush webinar. In short, the Association of the United States Army ("AUSA") is hosting its annual confab in October. And it's not just the U.S. Army meeting up with the defense companies – other countries from around the world also attend with the goal of striking a deal with some of our nation's weapons manufacturers. So this is the best place to learn where the contracts are being made and where the money is flowing. But Rob says that it's not the big businesses you should be paying attention to, but the smaller ones. (0:00)   Next, Rob explains why microcaps are some of the best businesses that provide growth opportunities. The majority of stocks in the S&P 500 and S&P 100 indexes were once microcaps, and if you can find a company that has the same potential and value, your investment could soar. But Rob understands why folks are cautious of microcaps – there are some bad apples out there. That's why he and Altimetry Chief Investment Officer Joel Litman created a "Do Not Buy" list of stocks that investors should avoid unless they make tremendous improvements. And Rob says that we haven't seen such a great opportunity in defense stocks since the 1980s. (19:25)   Finally, Rob discusses the U.S. government's $40 trillion debt and why it's not as bad as people believe. The U.S.'s revenue is able to offset its debt, so it can afford to take on that amount. Additionally, Rob says that every American should want the government to run a reasonable deficit every year. That creates value for us as citizens by growing our economy. And Rob says that folks are mistaken for selling off the hyperscalers just because they've become net debtors. (34:03)