More Bad News for Defense Contractors


In today's edition, Brendan discusses defense cuts, and in particular a recent Wall Street Journal article that stated defense contractors were planning to disclose massive job cuts before the November elections if Congress doesn't act on sequestration. Sequestration would mean another $500 billion in automatic defense cuts over 10 years, beginning January 2013. Considering this is an election year, not much is expected to get done before November, so this is a potential way for defense contractors to highlight the issue. In the video below, Brendan discusses what this means for defense contractors, and if any of them deserve a spot in your portfolio.

Many investors looking at defense contractors are in wait-and-see mode depending on what happens with sequestration. But the recent dip in the market presents an attractive buying opportunity for long-term invesors. To take advantage of this, we've created a free report featuring a stock from a different sector that has us so excited we can hardly contain our investing enthusiasm. This pick has so much promise that we've dubbed it "The Motley Fool's Top Stock for 2012." In it, our chief investment officer identifies his favorite company for the year. To access the report before the rest of the market catches on, click here -- it's absolutely free.

At the time thisarticle was published Brendan Byrnes has no positions in the stocks mentioned above. The Motley Fool owns shares of General Dynamics, Lockheed Martin, Northrop Grumman, and Raytheon. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.