Will Companies Dependent on Government Spending Suffer From Cuts to the Budget?
Value Expectations submits: Earlier this month, the federal government faced what would have been its first shutdown since the mid-1990s. But, without a moment to spare, a “good enough” federal budget plan proposing around $40 billion in cuts was finalized to avert a shutdown.In March, President Obama had stated that jobs, healthcare, clean energy, education, and infrastructure remain his top priorities and are therefore less likely to experience major cuts. However, with enormous pressure on both the President and Congress to avoid a national debt crisis, every arena could potentially be on the chopping block before long. Therefore, it is important to use caution when investing in publicly-traded companies that currently have a heavy exposure to government spending. TheComplete Story »