Tuttle: "Wouldn't Panic" in Iran Sell-Off, Defense Stocks to Soar

0:00Dreaming now to take a look at the response of several sectors to the conflict in the Middle East. We want to welcome in Matt Tuttle, CEO and CIO of Tuttle, capital management. Matt, it's good to see you. What a weekend and, you know, kind of a head spinner. It's not what I expected this weekend in approaching this Monday to start off a new month. So, we've got a lot of volatility in play today. We've got futures under pressure, oil ripping this morning. What do you notice about the patterns? You say stocks, dip, oil, ribs. What's the pattern here that you notice the most? Yeah, it's the usual war playbook. War starts, stocks sell off, oil goes higher. And then the typical playbook to play that is you buy the dip in stocks and, you know, you stay away from the rip and oil. You know, I understand that the normal playbook is only the normal playbook until it isn't. I would not be surprised to see us close well off the lows.

1:02I mean, even green today. So I wouldn't be shorting this market here. I wouldn't be going long a while. But I'd be careful. You know, the market tends to mess up the most people it possibly can. But, you know, we're off the lows this morning. And, you know, from market standpoint, I wouldn't panic. Okay. Well, let's talk about what's happening in the defense sector. We're still seeing big gains in defense, whether we're talking about Lockheed Martin, RTX, formerly known as Raytheon. We've got general dynamics, also higher Lockheed up 5% at the moment. And these are, we're holding strong gains here, RTX, rallying more than 6%. To expect that to hold up through today's session and possibly through this week. So I do. You know, I think a prolonged war is going to be bullish for the defense primes. What I'd also be looking at in your previous guest mentioned that, you know, the drone makers. But also, you know, the advanced tech.

2:04So, for example, we saw Israel firing lasers knocking down missiles. I'd be looking at the photonics names as well. You know, we just did the UFOD ETF a couple weeks ago to play on more of this advanced technology. And, you know, you may see some more of that surface during this. Okay. So that's the next gen type of defense technology that you're talking about. How does an everyday investor, you know, kind of play into that theme without really chasing the speculative kind of moves? Well, I mean, at the expense of talking my own book, you know, UFOD we launched two weeks ago to exactly do that. So the defense primes, the drone makers, the photonics, you know, the volunteers of the world, the critical minerals, all the things you need to, you know, kind of go into this next generation defense.

3:05You know, you could also buy, you know, the Lockheeds, the Raytheons. I mean, one of my favorite sayings as long as war is profitable will continue to have wars. You know, so they're going to be the main beneficiaries of a long, drawn out conflict, which we'll see. You know, you're seeing reporting that, you know, it's going to be weeks, not days, but, you know, early days here. Yeah, listen, we are seeing obviously response, retaliatory responses, and then aerospace clothes, airlines under pressure this morning, Delta, American United. You name it. They are under pressure today amid the worries about the impact and longer term impact, you know, to your point about the traditional defense players, RTX had already been higher and outperforming so far this year. I've definitely Lockheed Martin had already been outperforming so far this year. And I've heard calls from different analysts to expect momentum and defense before this happened.

4:05So do you expect that playbook to continue to operate throughout this year as it relates to the defense sector, Matt? I do, you know, I don't see tensions going down, you know, and I do think a lot of this was priced in. So I would be a little bit careful buying the rip and some of these defense names, maybe, you know, wait for them to come down a drop. We also like European aerospace and defense. So we launched a UAD right after Trump came in, you know, Europe has not been dragged into this conflict, but they haven't been dragged into this conflict yet. This becomes broader brings in more people, you know, you might see that as well and it may benefit those names. And then one thing that's interesting to me, I took a look across crypto and there's actually not a lot of turbulence there this morning. I mean, we are sitting at levels that we haven't been able really to get away from, for instance, when we look at Bitcoin sitting around 65,000, but not the pressure that you'd expect that we're seeing across risk assets.

5:15What are you paying attention to here, Matt? Yeah, so I am watching Bitcoin Ethereum, all the cryptos with a lot of interest. If you're a skeptic, you'd say they've sold off so much that, you know, they can't go down anymore. If you are a bull, maybe you're saying, hey, people are looking at Bitcoin as digital gold right now. You know, I do think that, you know, they've sold off a lot and, you know, we would be buyers of the dip on crypto here. Okay. All right, Matt. Thank you so much. That's Matt Tuttle, CEO and CIO of Tuttle Capital Management.