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 |
A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.
The President took an oath to protect and defend the Constitution of the United States. If he fails to do this, and violates the 2nd Amendment, he should be impeached as a traitor to the country and then punished accordingly.
Molon Labe
Fear, fear, fear! Look at the chickens run! Let's get a gun and hide in the basement from the guy who fought the Republicans for the last 4 years, passed a gun law, allowing guns to be carried into National Parks!
What is wrong with so many Americans that still believe the answer to fear is hate? What will any gun resolve! Will a gun make a timid person less likely to kill a bully? No!
Will a gun ever replace negotiation in ending a war? No war ever ended without the latter taking place!
Why would purchasing a killing device make anyone feel better about themselves? Why would carrying a gun ever make us believe the world would be a safer place if all people carried guns?
While rifles and shotguns can have value for hunters, who rely on hunted food to adorn their tables, a handgun has no real purpose, except for killing people!
To own a handgun, each person must acknowledge they are pre-meditating "murder" if they ever use one in a fit of anger, or they are pre-mediitating homicide, in the case of self defense!
Most handguns, used in crimes, are unregistered and stolen! Children, playing with unattended handguns are the results of having a loaded weapon in proximaty to them!
A locked up, safe, handgun, will typically be unavailable for use when a robbery occurs!
A handgun wileding robber, upon seeing an armed homeowner or shop owner, are much more likely to discharge their weapon first!
So, sleep well, grab your bibles, and hope God will defend you! Why would we need a gun if we have entriusted our lives to the gospel and the "Thou Shalt Not Kill" passage as the bible commands?
Guns never make us sleep better! Guns only convince us to do stupid things, because we have a gun to fall back upon! That is stupidity in a nutshell!
In the last 4 years of President Obama gave more rights to gun owners, NOT LESS. I voted for President Obama i own
1. Remington 30-06
2. SKS 7.62x39mm
3. Mossberge 12 guage pump
4. Browning 12 guage auto
5. Remington Nylon 66
6. Keltec 380
7. Smith & Wesson 357 and a couple of compound bows
I hunt with my weapons and shoot at Busch cans. I have no concern that this President will take away my ability to own or carry my weapons. If my memory serves me correctly he was suppose to do that in the first term...but if i'm not also mistaken the Aztec calender says the world is coming to an end in the next month so owning a weapon legally or illegally is not going to matter to much. There are nuts that dont need guns, just like some dont need to drink alcohol, but they have and they do. Thats why you have different parts of the Governing body to keep in check the whole body.
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