Should You Be Positioning For More Terrorism Activity?

May 4, 2010 1:22 PM EDT
Despite news this weekend of the failed car bombing in New York City's Time Square, the stocks of anti-terrorism related companies have done nothing. Now that more and more evidence is coming out that the attempt was not just a "lone wolf" but was part of a internationally effort to create terror in the heartbeat of America traders need to think more and more about the "risk trade."

Today's sell-off is being blamed on debt contagion fear in Europe, but maybe a little of it has to do with investors positioning for more risk ahead.

Following the attempted Christmas Day terror attack aboard a Northwest flight from Amsterdam to Detroit, shares of terror-related stocks were flying. This time they did nothing.

Does an opportunity exist now to buy into some of these names? Maybe traders should be thinking about it, at the minimum as a hedge.

Here are some top anti-terror stocks:

  • American Science & Engineering Inc. (Nasdaq: ASEI)
  • OSI Systems, Inc. (Nasdaq: OSIS)
  • ICx Technologies, Inc. (Nasdaq: ICXT)
  • L-3 Communications (NYSE: LLL)
  • L-1 Identity Solutions Inc. (NYSE: ID)
  • FLIR Systems Inc. (NASDAQ: FLIR)
  • Cogent Inc. (NASDAQ: COGT)

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