The following video is part of our "Motley Fool Conversations" series, in which, consumer goods editor/analyst Austin Smith and industrials editor/analyst Brendan Byrnes discuss topics across the investing world.

In today's edition Brendan and Austin discuss President Obama's proposal for trimming $487 billion from the Department of Defense budget. Which defense contractors are best positioned to weather these cuts, and can these companies make a comeback in 2012?