It’s been an interesting week in financial markets.

FTSE: flat. Gold: up. War stocks: up. As I write, cryptocurrencies are catching a bid again.

If your portfolio is in the green today, you’re probably a cynic, or as the Americans might say, a “wing nut”.

But being a wing nut can pay. The very first time I wrote to you in Capital & Conflict (nearly a year ago now), I suggested that cynical readers may be interested in a certain investment fund. You can see its performance since then below.

The reason I recommended it was to profit from Machiavellian wars started by the government to bind society together under their rule. This might not have occurred just yet, but this cynicism has certainly earned its keep in a portfolio.

The companies within this exchange-traded fund – weapons and military equipment manufacturers – have had a great run. And with the proxy war in Syria between the US and Russia becoming more open… and our own government wanting another go at blowing up the Middle East… the future remains bright for the dogs of war.

What do you think about British involvement in Syria? I’d love to hear your thoughts: boaz@southbankresearch.com.

The perpetual, evergreen nature of the war on terror has fed the war dogs well.

Not to mention the drones of war, which are also “evergreen” in their involvement in war, according to Military Times:

Drones are a big part of how every [branch of the military] sees war in the future playing out, and from cheap scouts in the field to elaborate lasers built to shoot down hostile drones, the notion that drone war is a separable part of warfighting can largely be laid to rest. Drones are an evergreen part of war, now.

Ever since 17 September in 2001, when the first armed Predator drone flew into Afghanistan, the drone industry has continued to soar. Naturally, our tech specialist Sam Volkering has recommended the stock of a tiny company in the drone space for readers of Revolutionary Tech Investor to take advantage of the trend, which is accelerating: the US Department of Defence (DoD) has requested the US Treasury buy the military three times as many air, sea, and land drones next year as this year.

The Americans are looking to expand their smaller drone arsenal, rather than their fleet of massive Alien-esque “Global Hawks” and “Reapers”, the former of which costs more than a hundred million dollars each. What they’re after instead are smaller, more “user-friendly” models.

On the DoD’s shopping list are more than 1,500 Switchblade drones for example. These are two foot long and can be launched almost anywhere from a small tube. They’re essentially small electric guided missiles, which can be controlled until impact by a human with a remote.

They’re made by the company AeroVironment ($AVAV) – the shares have jumped on the news of the request.

But let’s zoom out a bit. Where will the money come from to purchase all these drones, and fight the evergreen “war on terror”?

The US Treasury. Where will it get the money? The US taxpayer is first up, of course. But most of the money will need to be borrowed. Which is where things get interesting.