Why gun stocks soared after Obama's win
In a repeat of 2008, traders anticipated an increase in firearm sales after the election.
In a reaction that surprised absolutely no one, investors rushed into gun stocks after President Barack Obama's win, expecting firearm sales to soar soon.
Gun makers Smith & Wesson Holding (SWHC) and Sturm Ruger (RGR) rose sharply Wednesday in a repeat of sorts of the response to Obama's first presidential victory in 2008. The stocks were up again in Thursday's trading. Gun stocks have performed well over the four years of Obama's term. Sturm Ruger, for example, rose from $7.04 on Election Day in 2008 to $50 Thursday.
But investors think the stocks have farther to go, propelled by fears that Obama will crack down on guns in his second term.
Sturm Ruger shares rose 6.8% Wednesday and another 4.8% Thursday. Smith & Wesson shares rose 9.6% Wednesday and another 3.8% Thursday. By comparison, the Standard & Poor's 500 Index ($INX) fell nearly 2.4% Wednesday and was down slightly Thursday.
The National Rifle Association certainly contributed to fears of expanded gun control in Obama's second term. "An anti-gun Supreme Court, a U.N. Arms Trade Treaty, and a sweeping gun ban aren't just a possibility in a second Obama term," the association's CEO, Wayne LaPierre, wrote on the group's website. "They're a near certainty."
But Obama hasn't taken much action on gun control. In fact, he signed legislation allowing loaded guns into national parks and on Amtrak trains. Still, in the second presidential debate, Obama mentioned the possibility of keeping automatic weapons out of the hands of criminals and the mentally ill.
"Part of it is seeing if we can get an assault weapons ban reintroduced, but part of it is also looking at other sources of the violence, because frankly, in my hometown of Chicago, there’s an awful lot of violence, and they’re not using AK-47s, they’re using cheap handguns," he said.
That comment may have triggered a consumer fear that gun sales will see tighter regulations. In October, the number of federal background checks on potential gun buyers rose 10.6% from the month before to 1.61 million, according to the FBI.
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| Tags: | Kim PetersonRGRSWHC |
people are idiots......
obama's not going to take away your guns any more than ted nugent is......he has bigger fish to fry than gun control.....in case you hadn't noticed, he has a country to get moving....
i think it's the gun lobby and gun makers who are ringing the death knell of gun ownership....what a great sales strategy......get 'em while you can folks....we've only been around 175 years, you never know when we might close up shop......
Its amazing how many more guns deaths per year the USA has then other countries. Not just in numbers but in % compared to the population its pathetic. Canada averages about 300 a year with a population of 30 million. You average 30,000 a year with a pop of 300 million. If we had a pop of 300 million we would have 3000 deaths. You have 10 times that.
Your second amendment was written in 1776 when the USA was defended by militias. There was a threat of the British returning, a wild country side with isolated farms and Native Americans that you guys fought with constantly. Which of those things are still an issue?
If you can't see it was a law written for a different time and has been outdated then you are lost.
I don't believe this POTUS or any future POTUS would dare try to repeal the 2nd Amendment.
That being said, the need for control is important. If we look at the random crimes commited with guns you can see that these are illegal, stolen, pawned, bought, sold under the table, etc. Those are the arms that law enforcement should ban. Legal purchases should be tightly controlled with background checks to help better prevent another Columbine or Aurora (crimes with weapons bought legally).
BTW - I am a gun-toting liberal. I took lessons at the gun range, took my CHG test and got my license. Why? Not to wave around like the Wild West screaming "Pry this from my cold, dead hands!" or for some revolution that will never happen, but because it is as important to me to know how to control a weapon as it is to control my vehicle. Because I'm a woman living in the city. I'm not afraid of my rights being taken rather I'm prepared for an unforseen event against my home or my person.
Geeeee! I wonder who started the NRA? It couldn't be the arms industry, could it? The companies that profit off of gun sales!!!!
All of the NRA groupies I know are paranoid and depressed idiots. They are fascinated with firearms. One gun isn't enough. Ten guns aren't enough in their collections. Fifty guns aren't sufficient either. I know a lot of the clowns posting on blog fit what I just said in this paragraph to a Tee!!!
I grew up shooting BB guns and 22s, but I haven't owned a gun in my adult life. I don't even have a FOID. Criminals can get a gun with or without a FOID in under an hour. You can wait a couple days to buy a gun to add to your precious collection. Then you can stick it in your gun locker for the next fifty years and take it out once in a while and stroke and clean it!!!
I have no problem with citizens owning guns. What turns me off is that the NRA whips the imaginations of millions of idiots out there, who would be just as dangerous if pandamonium broke out as the criminals who use guns to commit crimes and murders. Too many of them are one step away from being the next assassin. Guns make them feel powerful, as if they can do anything or have the authority to judge with a bullet. If you want to use guns for hunting or target shooting-that's OK by me-have fun! But take the hate and stupidity out of the hobby please!!!
ok! Let's say all firearms are banned and confiscated tomorrow from everyone including the crimanls. Will that stop the hoodlems and gangsters from attacking with knives and baseball bats? Anyone know what a zip gun is and how to make one with a pipe and a nail?
Will the crimanls get a real job and become good citizens?
"Waaaahhhaaaah! Waaaaaahh! Waaaaaaaaaaaaaaahhaaa! I gotta sleep with guns under my pillow, every night! Waaaaaaaaaaahaaaaaah! I gotta sit on the toilet or take my once-a-week shower-- with a gun! Waaaaaaahhaaaaah! I gotta drive my pickup truck, text, and have a gun-- all at the same time! Waaaaaaaaaaaahhaaaaaaaaaaah! I gotta be paranoid to feel safe, in my nice country vanilla 'hood" Waaaaaaaaaaaahh! I see terrorist out to get me in every shadow! Waaaaaahaaaaaah! Sob! Sob! Snort! Fart!"... cries the "oh-so-brave" gun-nuts!
What an act...!
FEAR...FEAR...FEAR...FEAR...HATE...HATE...HATE...FEAR...FEAR...FEAR
Doesn't ANYONE see the obvious connection between the investors and gun companies just trying to boost sales of an item that doesn't wear out very fast?
Without a war to sell to, these companies will lose revenue, so they peddle FEAR and HATE.
Obama LOOSENED gun regulations, people. STOP THE FEAR, NOBODY IS GOING TO TAKE YOUR GUNS
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