Cyber Stocks Soaring From Conflict With Iran
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Cyberattacks are likely to have a negative impact on the United States, but some companies stand to benefit. Chief among the beneficiaries are likely to be cybersecurity stocks whose products and services are bound to see increased demand.
As the hostilities between the Trump administration and Iran increase trading cyber security shares and active traders seem more definitive as the cybersecurity investment space is making traders good money. This will continue while the US continues to fight it out with Iran and even Iraq on the battlefield and Twitter.
For US investors an important measure is The Exchange Treaded Fund Prime Cyber Security Index deliverd using the ticker symbol of HACK which has been surging since the US drone assaination of a top Iranian general. Refered to by professional traders as simply the cybersecurity ETF, the investment vehicle counts cyber security stalwarts Cisco, Palo Alto Networks and Fortinet among its top 10 holdings.
US evidently think that public corporations along with governmnet and other oranisations will aggressively ramp up spending on cyber security protection.
The ETF outperformed the S&P 500 the last five sessions during the peak of the geopolitical tensions in the first week of January, rising 2.5% versus unchanged for the broader S&P. Public cyber security comanies with shares traded outside of the ETF’s top 10 holdings have also benefited: CrowdStrike went up 8.7% and FireEye has addedn 5% to its share price.
Iran is responsible for a minimum of 14 major cyberattacks around the world in recent years, according to the Center for Strategic and International Studies. From 2011 to 2013, Iran is said to have unleashed cyberattacks on major US financial institutions including JPMorgan, Bank of America and CapitalOne.
'The most likely course of action cyberattack is still against an ally that has possibly spent less time and energy on hardening themselves against cyber threats. Saudi Arabia likely presents an easier target with less ability to retaliate effectively,' according to one anlayst at Academy Securities.
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