 |
 Avoid This Sector In 2012 by Robert Morris, Editor The past decade was very kind to the US aerospace and defense industry. Government spending on national defense increased dramatically after 9/11 to fight the war on terror. And it increased even more as the decade wore on to support the wars in Afghanistan and Iraq. According to the Department of Defense (DOD), base military spending was $297 million in 2001. But by 2010, base spending had increased to $528 million. -------------Sponsor------------- America on the Rise Again. Act Now to Lock in 25% to 50% Profits. Despite recent evidence showing the American recovery picking up steam, a recent statement leaked by Fed officials is calling for another quantitative easing. This has put into motion a massive flow of money that may send the Dow past 14,000 before Memorial Day—despite the slowing U.S. economy. Brand new report from the nation's top traders reveals the top 10 stocks they are buying now. The emerging giants of the Great American Recovery of 2012. Don't miss out on this incredible opportunity. Click here now to access your FREE copy now. ------------------------------------ That's a hefty 77% increase. And thanks to the spending boom, defense stocks have performed very well. Take a look at the following list of defense company stocks. It shows just how they've done since the market bottom of March 2000.
But the defense stock boom could be coming to an end. Last week, Defense Secretary Leon Panetta announced sweeping cuts in defense spending for fiscal 2013. He's asking for a stunning $33 billion less than Congress approved for 2012. And this is just the beginning. Earlier this month, Congress missed the Budget Control Act's (BCA) deadline for imposing deficit reduction measures. The BCA was passed last August to secure the votes needed to raise the debt-ceiling. By missing the deadline, Congress has triggered over $1 trillion in automatic, across the board spending cuts. The Defense Department's share of the cuts is a whopping $487 billion over the next decade. In other words, the DOD will have to chop nearly half a trillion dollars in spending over the next ten years. Clearly, it's an ominous sign for defense firms. The DOD's proposed budget incorporates a wide range of spending cuts. The Navy will have to slow construction of new ships. The Air Force is looking at eliminating several tactical air squadrons. And both the Army and Marines are facing severe cuts in manpower. According to Lockheed Martin CEO, Bob Stevens, "the impact on the industry would be devastating." And the impending cuts come at a time when defense firms are already starting to struggle. Last week, LMT said fourth quarter earnings plunged 29% due to lower government spending. The company also issued a lower profit forecast for 2012 than analysts were expecting. General Dynamics said they suffered a similar fate in the final quarter of 2011. Their profit fell by more than 17%. And they too guided earnings estimates for 2012 below analysts' estimates. The 2012 outlook for defense firms is dim at best. And the bearish forecast will likely weigh on shares of defense companies over the year ahead. Now is clearly not the time to add defense stocks to your portfolio. Profitably Yours, Robert Morris | Monday, January 30, 2012  • Sturm Ruger (RGR) hit a new 52-week high of $40.25. The company's market cap is now just over $753 million. • Regeneron Pharmaceuticals (REGN) set a new 52-week high of $87.23. They now have a market cap of over $7 billion. • Cellcom Israel (CEL) fell to a new 52-week low of $14.20. Their market cap is now under $1.5 billion.  "I don't know what the seven wonders of the world are, but I do know the eighth -- compound interest." -Baron Rothschild   
 Urgent Silver Market Technical Update... Friday, January 27, 2012 A Contrarian Reason To Buy Stocks Now Wednesday, January 25, 2012 This Market Has Big Upside Potential For 2012! Monday, January 23, 2012    |
 Copyright 2012 Hyperion Financial Group, LLC. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This email may only be used pursuant to the subscription agreement controlling use of the Dynamic Wealth Report website and any reproduction, copying, or redistribution of this email or its contents, in whole or in part, is strictly prohibited without the express written permission of Hyperion Financial Group, LLC. LEGAL DISCLAIMER: Neither Hyperion Financial Group LLC nor any of its employees are a registered investment advisor or a Broker/Dealer. As such, Hyperion Financial Group, LLC does not offer or provide personalized investment advice. Although Hyperion Financial Group, LLC employees may answer general customer service questions, they are not licensed under securities laws to address your particular investment situation. Nothing in this report, nor any communication by our employees to you should be considered personalized investment advice. Owners and writers may have positions in the securities that are discussed. However, no associated employees may intentionally engage in any transaction that directly or indirectly competes with the interests of our subscribers. We accept no compensation from any companies mentioned in our reports. Past performance is no guarantee of future results. All information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell any security. All opinions, analyses and information contained herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. Investments recommended in this publication should only be made after consulting with your financial advisor. Any brokers mentioned herein constitute a partial list of available brokers and is for your information only. We do not recommend or endorse any brokers, dealers, or investment advisors. |
| This message was sent to ignoble.experiment@arconati.us from: Hyperion Financial | 20701 N Scottsdale Rd, Ste 107-154 | Scottsdale, AZ 85255 | Email Marketing by |
| Manage Your Subscription | Forward To a Friend |
No comments:
Post a Comment
Keep a civil tongue.