It's time to reflect on 2025 and prepare for the new year, potentially bringing new ideas for your portfolio. With that in mind, here's a look at three investment themes that you might want to prepare for in the new year.

1. Defense stocks will continue to underperform

A quick look at the chart below shows that the major defense companies, including Lockheed Martin ( LMT +1.13% ) , have underperformed the market in recent years. RTX has slightly outperformed, but that's arguably due to its large commercial aerospace businesses enjoying a recovery in flight departures.

The general underperformance might surprise investors, given that wars and geopolitical conflict have encouraged military spending, NATO members have committed to raising spending to 5% of GDP by 2035 , and d

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