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9 reasons Wall Street lost its love for the government market

  • By Nick Wakeman
  • Nov 14, 2011

9 reasons Wall Street lost its love for the government market:

  • Mid-term elections brought rise of the Tea Party and hardened political positions. 
  • Budget talks focus more on philosophical tax, spend and borrow debate. 
  • Too many near government shutdowns. 
  • Debt-ceiling debate. 
  • Fiscal 2012 funded so far with continuing resolutions. 
  • Supercommittee report due by Dec. 2. 
  • Congress votes up or down on super committee report by Dec. 23. 
  • Presidential elections in November 2012. 
  • Bad news on funding really begins in January 2013.

And 4 reasons why it's still a safe bet:

  • Aging government workforce increases need for contractors.
  • Attractive cash flow from long-term contracts.
  • Rise of mobile and social media solutions.
  • Insourcing pressures have eased.

Based on a presentation by Ed Caso of Wells Fargo Securities at the Morrison Foerster 2011 Federal M&A Outlook conference.

About the Author

Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.

Reader Comments

Tue, Nov 29, 2011

Yes, the reality is that the government will be required to make major spending cuts to handle a huge and growing national debt that has added over $4 trillion in recent years. And yes, that will cut into contracting $s. I feel like the above first list is a bit misleading in that it hits a bunch of political hot buttons but misses this major point.

Wed, Nov 16, 2011 JR

In response to John K. I feel the same way about the Government.

Tue, Nov 15, 2011 John K Albuquerque NM

Please, someone/anyone show me where Wall Street has ever been a 'leading' indicator for, well, anything?

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