×

Cramer breaks out the big guns with defense stocks

When Jim Cramer takes one look at the headlines in the news, he knows that days of the U.S. being the global policeman are coming to an end. That doesn't mean defense and aerospace stocks have to break down as well. In fact, they've been roaring lately!

"You see it is happening. The notion of the U.S. being the global policeman is breaking down," Cramer added

The orders for defense equipment overseas are creating an upside that the "Mad Money" host didn't think was possible. Whether it is peace talks with Iran, or pulling out of Afghanistan and Iraq—these are all feeding into the need for countries to become more independent and invest in defense equipment.

A KC-135 Stratotanker from Fairchild Air Force Base, Wash., refuels a B-1B Lancer during a training exercise Sept. 23, 2014, over South Dakota.
Source: US Air Force
A KC-135 Stratotanker from Fairchild Air Force Base, Wash., refuels a B-1B Lancer during a training exercise Sept. 23, 2014, over South Dakota.

Just take a look at a few highlights in the news recently to see the expansion:

Raytheon received a $2.4 billion Patriot missile order from Qatar, and the stock soared on Monday.

Northrop Grumman received a $657 million order for unmanned armed vehicles.

Lockheed Martin received a $308 million order from Taiwan for F-16 fighter planes.

The U.S. government gave Egypt 10 Apache helicopters in the event that ISIS expands its territory.

"A host of European countries, growing mistrustful of their U.S. allies are said to be considering multibillion-dollar orders for the antimissile defense system," Cramer added.

Think about it: Turkey and Jordan are right in the path of ISIS, along with Saudi Arabia. Additionally Cramer would not be surprised to see Ukraine bulk up its weapon artillery with Russia, and South Korea add weaponry to deal with North Korea.

----------------------------------------------------------
Read more from Mad Money with Jim Cramer
Cramer Remix: This sector is on fire
Cramer says adios to OPEC's pricing power on oil
Cramer: Competition is a stock killer
----------------------------------------------------------

"The world is re-arming. We are pretty much the only companies that still make arms in sufficient quantity and size to give you security if you are a threatened regime."

So, despite pullbacks on military spending in the U.S., Cramer thinks the aerospace and defense stocks will break out the big guns in 2015 and keep going higher.

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com