Before Sgt. Stubby of the 102nd Infantry Regiment was a war hero, he was just a stray...

Stubby had wandered onto the Yale University campus in 1917, where the Army unit was training before shipping off to Europe.

A wiry little bull terrier mix, Stubby had no home... no owner... and no future.

That is, until he captured the heart of Pvt. J. Robert Conroy. Conroy taught Stubby tricks – how to march in formation, salute with his paw, and even recognize bugle calls.

Then it came time for the regiment to board its ship to France. Conroy couldn't leave his friend behind. He smuggled Stubby aboard, hiding him in a coal bin until they were safely at sea.

By the time they reached Europe, it was too late to turn back. The regiment's commanders were impressed by Stubby's discipline. So they made an exception...

Stubby was going to war.

Life in the trenches hardened the little dog fast...

Stubby learned to dodge incoming artillery and recognize the distinct whine of enemy shells before impact.

He could even sense mustard gas before it reached the men... sounding the alarm before an attack could spread.

And he didn't just play defense. While patrolling the trenches one night, Stubby caught a German soldier sneaking toward Allied lines. Stubby latched onto the seat of his pants and didn't let go until the soldier was captured.

The regiment rewarded Stubby with a promotion to sergeant. He was the first dog in U.S. military history to earn rank.

Beyond his nose for danger, Stubby had an uncanny ability to lift morale...

He would trot through the dugouts, bringing comfort to men who hadn't been home in years.

Even when a shrapnel injury landed him in a field hospital, Stubby spent his recovery time visiting wounded soldiers.

Then, he went right back to the front lines.

All told, Stubby participated in 17 battles over 18 months. He returned home a legend – and the most decorated war dog in U.S. history.

He led parades... met presidents Woodrow Wilson, Calvin Coolidge, and Warren Harding... and became the official mascot for Georgetown University's athletic teams. He even had a custom-made military uniform, complete with medals.

Stubby's legacy is preserved at the Smithsonian Institution. His story still inspires generations – a scrappy mutt with no pedigree or formal training who became one of the most valuable soldiers on the battlefield.

Militaries don't have to rely on a stray dog anymore...

Technology now fills that role. And these days, next-generation defense is more critical than ever.

Between Israel and Iran... China and Taiwan... and Russia and Ukraine... overseas tensions are reaching a boiling point. Many U.S. allies are leaning on us for supplies. And our own military is getting more involved.

So it's no wonder defense stocks are doing so well. The iShares U.S. Aerospace & Defense Fund (ITA) is up almost 30% this year alone...

For comparison, the broader U.S. market (via the S&P 500 Index) is up just 6% in 2025. That confirms major outperformance in the aerospace and defense sector.

The U.S. is the biggest defense market on the planet...

We have the largest budget and the largest suppliers. That's a setup for a healthy industry.

Of course, rising tensions are never cause for celebration on a personal level. But the fact remains, aerospace and defense is an increasingly important market.

The entire industry is performing well. But you should pay special attention to newer tools and systems. Recent conflicts have shown that the defense industry is changing.

Technologies like unmanned drones have been a key part of the story this year. For the biggest edge, look for companies that are pushing the most innovative offerings.

Regards,

Joel Litman
July 10, 2025