Stocks Likely to Bleed If Congress Slashes Budget: John Dorfman

Listening to both Republicans and Democrats spout off these days, it sounds like austerity is the new patriotism. Both parties vow to cut federal spending. Republicans, urged on by their Tea Party wing, say deficit reduction is their top priority.

If and when rhetoric begets actions, stocks that depend on federal spending for a significant part of their revenue will be scrutinized by investors.