As global hostilities increase, experts recommend that investors reassess opportunities in the defence sector. Brian Madden, chief investment officer at First Avenue Investment Counsel, notes that military spending is likely to remain structurally high due to ongoing conflicts, including the war in Ukraine and the recent tensions in Iran. In 2025, Canada spent $63.4 billion on national defence, fulfilling its NATO commitment to allocate 2% of GDP to defence for the first time. This shift in spending opens avenues for investors in various areas, including cybersecurity and drone technology, which are becoming increasingly relevant in modern warfare. Madden emphasizes that while traditional defence stocks may not have performed well recently, the broader market offers potential opportunities, especially in companies like Lockheed Martin and Northrop Grumman Corp. Canadian firms such as Bombardier Inc. and CAE Inc. could provide hybrid exposure to both civilian and defence sectors. As nations bolster their military capabilities, investing in adjacent industries like engineering and construction could also yield benefits. However, investors are encouraged to consider their ethical stance on defence investments and explore alternatives that align with their values.