About

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Andrew T. Gillies is Director of Communications at the Center for Audit Quality, an affiliate of the American Institute of CPAs, in Washington, DC. Based in Washington since 2002, he has also worked in editorial and communications roles at the Investment Company Institute, the World Bank, Forbes, and Vault.com. His policy-themed writing has focused on aerospace and defense, energy and environment, transportation, and financial services.

Thursday, November 06, 2008

Defense Stocks At The Turning Point

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