As travel operators brace for a knee-jerk pullback from nervous tourists, investors in security and defense companies may stand to benefit from redoubled government efforts to stamp out terrorism.
Since the Paris attacks, political rhetoric on stepping up the fight against ISIS has stepped up sharply. French President François Hollande and Belgian Prime Minister Charles Michel have pledged significantly more resources for security forces while U.K. Prime Minister David Cameron has vowed to "build the case" for military intervention in Syria.
Companies with operations focused on diverse aspects of the security industry could see a bump to revenues if the heightened state of alert continues, analysts say.
Among the more obvious potential beneficiaries are Aerospace & Defense companies which manufacture military equipment such as fighter jets and helicopters. Gunships constructed by Northop Grumman and fighter jets manufactured by Lockheed Martin were used in recent Syrian attacks.