Stocks likely to benefit from the budget
The Federal Budget was very business friendly and provides a needed stimulus to the economy.
However, knee-jerk buying of stocks on the back of budget announcements is rarely a good idea for several reasons. First, government announcements are not always enacted exactly as described or in the timeframe described. Second, markets may have already moved in anticipation of the announcement. Third, and most importantly, the investment fundamentals of the stocks concerned have to stack up on their own merits.
In this report we look for the overlap of stocks that we have identified as having positive investment fundamentals based on our bottom-up and quantitative research, and that also have tailwinds coming from the Federal (and State) budgets.