Is F-35 Sale to Turkey Feasible? Insights from US NATO Representative Whitaker

US NATO Permanent Representative Whitaker stated that the sale of F-35 jets to Turkey is 'possible.' This development could trigger market fluctuations in defense sector stocks, particularly affecting companies like Lockheed Martin and Northrop Grumman, which may need to assess the financial sustainability of Turkey's demands.

Potential Market Shifts in Defense Industry

■Turkey's participation in the F-35 program could introduce new dynamics to the international supply chain.

■Evaluating local suppliers such as Turkish Aerospace Industries in partnership processes may alter the risk-reward balance for investors.

■However, existing sanctions and geopolitical tensions remain key factors that could hinder the agreement's completion.

Financial Implications of International Relations

■Growth in US defense exports could positively impact the S&P 500 Aerospace & Defense Index.

■Increased defense spending in Turkey might attract significant foreign investment in US Dollar terms in the short term.

■Yet, the current US-Turkey relationship uncertainty casts doubt on the long-term sustainability of such deals.

Aylin Güneş: The F-35 sale holds potential for a 2-5% increase in defense companies' total revenue structures. However, in markets with high geopolitical risks and low liquidity, financial participation in such agreements may be limited. Investors should diversify portfolios to mitigate risks associated with possible political reversals.