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Is the Biden Budget Bullish for Defense Stocks?

Is the Biden Budget Bullish for Defense Stocks?

Defense stocks lagged the broader markets in 2020 on fears that a new occupant in the White House, coupled with unanticipated pandemic-related stimulus, would crimp Pentagon spending. Judging by the initial budget document submitted last week, those fears were overstated. On April 9, the White House proposed fiscal 2022 Defense Department spending of $715 billion, up 1.4% from the 2021 appropriation.