Why gun stocks soared after Obama's win

In a repeat of 2008, traders anticipated an increase in firearm sales after the election.

By Kim Peterson Nov 8, 2012 2:41AM
Updated 12:25 p.m. ET

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.Ruger pistols © Getty Images

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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Nov 8, 2012 2:56PM
Looks like all the psychos from Stormfront decided to comment today. THIS is why I carry these days.
Nov 8, 2012 2:56PM
Gun stocks soar because deer season opens this month. Ever consider that?
Nov 8, 2012 2:55PM
Some of you make me laugh so hard.. even if you own a gun your probably to stupid to take the safety off... The gun you purchased has more of a chance of killing you than keeping you alive...
Nov 8, 2012 2:55PM
Nov 8, 2012 2:54PM
So much fear from sad little people.
Nov 8, 2012 2:54PM
Yeah right its not a concern so much as americans worried about tighter regulations as it is people are concerned about civil unrest and about they feel the safety of their family is in jeopardy with him in office. I for one have never owned a gun, but because of the uncertainty of how the economy is going I will be buying one right after christmas and heading to the shooting range to learn to use one properly. Im sure Im not the only one who feels this way. Its amazing that they give you reasons that are totally false as to why people feel the need to have guns right now.
Nov 8, 2012 2:52PM
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.
Nov 8, 2012 2:51PM

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

Nov 8, 2012 2:51PM
Good...Bad.... I'm the guy with the gun !

Nov 8, 2012 2:50PM
Nov 8, 2012 2:50PM
nobody, and i mean nobody is going to take my guns away from me while i am still breathing. and ill take any idiot that tries with me if needed.
Nov 8, 2012 2:49PM
Taking away our (law abiding citizens)  right to bear arms is just giving criminals more power.  Do you really think they apply for a license?  come on now!!
Nov 8, 2012 2:48PM
bottom line:  A great leader unites the people.  a terrible one divides them.

he has divided the US and people are buying guns like crazy because they flat out don't trust him.

Nov 8, 2012 2:48PM

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!


Nov 8, 2012 2:47PM
America has 10 times per capita the murders by guns as any other Country, Uzi, AK47 and automatic weapons are only good for one thing....killing human beings. If you truly believe you're safer witha gun in your hand, get a willy extension instead.
Nov 8, 2012 2:47PM
It won't happen all at once. It'll be gradual so that by the time you wake up it will be too late. I urge anyone to just look at the way Illinois is ran via Chicago and you'll see what I mean. This is going to be the model for the whole U.S. Courtsey of Obama. Also don't plan on no Social Security because that will be mandated a litness test before one can recieve it. And if you got any type of retirement from savings or pension you will not pass the litness test and your S.S. will go to the low life thugs and criminals. Get use to it America cause you keep voting the same suckers over and over again.
Nov 8, 2012 2:46PM

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.

Nov 8, 2012 2:46PM
Gangs and criminals all possess illegal black market firearms. The govts have been unable to stop it. Gun control is a failure. My advice to citizens is to obtain a fire arm because the USA is going to economically collapse within 5 years. What will be left of our police depts will be unable to protect life and property.
Where the HELL did you get that picture of Young white urbanites, shooting anything besides their mouths off? By the way the one on the right is holding a toy gun(orange tip) This just goes to show you, that the writer has NOT A CLUE!!!! The guns that cause all the problems are the ones illigally procured and in the hands of FELONS! Or the one's this administration gives to the gangs in Mexico (FAST & FURIIOUS).
Nov 8, 2012 2:45PM
I tink people are buying guns becasue it's going to get bad and they are worried about their families security in the future
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