Rising Conflict Risks and the Mil-Tec bubble.

<p><strong>Blain’s Morning Porridge August 28th, 2026</strong></p><p><em>“Then we shall fight in the shade…”</em></p><p><em><strong>Tensions between Moscow and Europe are rising. There are rumours of war. While Western nations seek to rearm and adopt the lessons learnt by Ukraine, a bubble has developed in Mil-Tec arounds autonomy and drones. Defence investment is not a speculative opportunity – but a key issue for the sustainability and longevity of nations. It’s a complex investment landscape that requires specialist expert knowledge.</strong></em></p><p><strong>Key Takeaways:</strong></p><ul><li>Defence investment is an economic necessity. It will not be buried by the developing Mil-Tec bubble.</li><li>Private capital firms rushing into the “Total Addressable Market” (TAM) rather than understanding the need is creating the frothy investment market.</li><li>The rules of defence investment are very different to Tech. Ultimately; there is one monopoly buyer of military kit – governments, but geopolitical shifts, changing alliances, and the reinvention and creation of new defence contractor “primes” underlies the re-growth of the sector.</li><li>The depth of US capital markets is funding the bubble – European investors have been slow to commit to Defence.</li><li>Understanding the evolution of the battlespace (which exists in multiple dimensions) is the key to due diligence of defence opportunities.</li><li>Military reality matters far more than financial hype. Investment needs to be considered but immediate.</li></ul><p><br></p><p>As we wait to hear all about what Kevin Warsh says at Jackson Hole, I thought it might be interesting to write about my day job - financing the new Defence Investment Fund; <em><strong>Spitfire Strategic Capital</strong></em>.</p><p><em>You can read the Morning Porridge by subscribing on </em><a href="http://www.morningporridge.com"><u>⁠</u><u><em>www.morningporridge.com</em></u><u>⁠</u></a><em>, and have it delivered fresh to your inbox every morning!</em></p>