The crystal ball of Wall Street seems to be agreeing with the polls which have been predicting a stronger Republican presence in Congress after the upcoming elections. How so? There has been a steady decline in the value of certain companies which get a large portion of their revenue from government coffers. These companies, mainly in the defense and healthcare industries, include such powerhouses as Lockheed Martin, which has showed a downturn to the tune of 5.9% since July, and Tenet Healthcare, falling 17% since the beginning of the year.Investors are cautious and staying away from companies which they perceive will be subject to less government largesse once Republicans take control of the purse strings. As Keith Wirtz, controller of $18 billion is assets as the chief investment officer at Fifth Third Asset Management of Cincinnati remarked, “There’s going to be a bridle put on U.S. government spending. The market’s looking through its binoculars and suggesting less government spending in 2011 and 2012 will hurt the fundamentals of these companies.”Some analysts, such as the New York Times blog ‘Five ThirtyEight’ are forecasting that the results of the upcoming elections will give the Republicans a 4-seat majority in the Senate and a possible 20-seat advantage in the House of Representatives. Elections are scheduled for this coming Tuesday, November 2.
Alyssa Anderson has been involved in the world of business on several levels for many years. She was the CEO of a start-up high-tech company until its purchase by a global on-line e-business. Alyssa helped formulate marketing strategies for several other companies as an independent consultant, and she has advised local government on methods to achieve appropriate fiscal responsibility. Her opinions are well known through her many editorials which have been published throughout her career in a variety of local and national print media. She has been heard on radio discussing current issues affecting the business community and Alyssa hopes to bring her special brand of commonsense coupled with uncanny insight into her editorial responsibilities as the Business Page editor for Left Justified. Contact Alyssa at alyssa(at)leftjustified.com.View all posts by Alyssa Anderson →