“The Sequester” is the money that will be cut from the budget as a result from last summer’s debt ceiling deal.
It’s expected to hit defence companies hard, as much of the cuts come from defence.
Last night, when asked about it, Obama indicated that the sequester was just Congress’ doing, and that he planned to make sure it wasn’t going to happen… a statement that really seemed like news to a lot of folks.
We put up the video here of it, pointing out its significance.
Ben White of POLITICO gets a little more colour on what Obama was saying:
A person close to the matter said Obama was not making any new policy and that the White House has never supported allowing the sequester to go into effect. This person told MM the president was simply trying to push back against Romney’s suggestion that the sequester spending cuts, especially on military spending, were designed and supported by the president.
If Obama’s position seems new to the market, then watch the ITA ETF, as that covers the big defence stocks.