Investors typically have a complicated relationship with defence stocks. They like the industry’s predictable cash flows, but many have misgivings about holding equity stakes in companies that manufacture killing machines, at least until recently. That’s why some firms offer indexes that explicitly exclude weapons.

But Donald Trump’s second presidency has ushered in a unique turn in our investing culture. Not only are defence stocks doing historically well, they’re doing even better than fundamentals alone would justify. Under Trump, whom the White House has mind-bendingly branded the “Peace President,” the market is paying a premium to own many of them.

“Peace President” Donald Trump is a boon for weapons makers’ shares.Credit: Getty Images

Trump has fanned the rally by prodding Europe to increase its defence spending, promising a Golden Dome defence system that could cost trillions (by some estimates) and — contrary to his non-interventionist reputation — green-lighting high-profile attacks, including those on Iran’s nuclear facilities and others on supposed drug traffickers.

Reports on Friday, which Trump has so far denied, suggest that the US may be preparing to strike military facilities inside Venezuela next.

Before I get into what’s happening here, it’s worth taking a moment to consider how unique this is. Trump, who

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