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Morgan Stanley

July 3, 2026

Flyby: 250 Years of Independence - A Reflection on the Cost of Freedom

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This report examines the historic costs of U.S. armed conflict while evaluating the current strategic defense landscape. It highlights the growing priority of missile and munitions procurement as a core pillar of modern U.S. deterrence strategy.

Key Takeaways

  • 1.U.S. defense policy focuses on strategic competition, with significant prioritization of missile and munitions procurement to support global deterrence.
  • 2.Modern armed conflict has become significantly more expensive in inflation-adjusted dollars compared to historical counterparts.
  • 3.The Trump administration has established the Munitions Acceleration Council (MAC) to identify and expedite 14 priority missile and munition platforms.

Table of Contents

  • The Price of Conflict
  • The Economic Toll
  • Defense Advancement and Strategic Competition
  • Missile Procurement: A New Deterrence Thrust
  • Aerospace & Defense Coverage
  • Aerospace & Defense Valuation
  • Commercial Aerospace Highlights
  • Defense Highlights
  • Weekly Financial Metrics

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Authors

Kristine T LiwagJustin M LangJason T HolcombGabrielle KnafelmanShaina C Zuber

Securities

NOCGD

Themes

Defense ModernizationGreat Power Competition

Regions

North AmericaUnited StatesUkraineIran