9 reasons Wall Street lost its love for the government market
By
Nick Wakeman
Wall Street isn't so hot for government contractors anymore. Here's why.
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.