Investing In A Pre-War World

Academy Securities is promoting the concept of "ProSec™" (Production for Security) as a key investment theme in a "Pre-War" world. This framework focuses on national production and security, encompassing investments by asset managers, corporations, and governments. The idea evolved from a narrower focus on refining to a broader view of national security needs, mirroring China's strategic approach. A "Pre-War" mindset, characterized by urgency and sacrifice, aims to deter actual conflict through preparedness. China's rise, utilizing diplomacy, information, military, and economic levers, highlights the need for the U.S. to adopt a similar strategic posture. ProSec™ emphasizes re-evaluating national security to include critical areas like semiconductors and energy. The Department of Defense is shifting focus towards homeland defense, potentially impacting border security and the approach to issues like drug smuggling. Actions in Venezuela could set precedents for addressing challenges such as Mexican cartels, signifying the real-world repercussions of national policy shifts. ProSec™ is envisioned as a long-term investment strategy reflecting a global theme driven by the need for national security. By understanding and addressing China's strategies, the U.S. can develop a successful plan that prevents escalation to war.