WASHINGTON, D.C. - With the election of Barack Obama, uncertainty hangs over U.S. defense companies. Michael Lewis, equity analyst at BB&T Capital Markets, isn't ready to make a call on how things will shape up for this sector in the Obama administration's first six months.
"It's very difficult to determine until we actually begin to see directional changes in funding or contracts actually starting to be pulled to the side," he says. "Longer term, I do think there will be some type of sea change with regard to how dollars are spent."
Fittingly, U.S. aerospace and defense stocks didn't dodge Wednesday's post-election market drop. The S&P 500's aerospace and defense constituents fell 5% yesterday, in line with the broader index's decline.
Full story at Forbes.com