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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For those that are complaining about the picture. Take a close look at the guy in the blue shirt. Take a closer look at the "gun" in his hand. I'm pretty sure it has a bright orange cap on the barrel. It appears to be a red rider special.
Here's how the fascists & communists do it. First collapse the government with some kind of economic catastrophe. Second, since demonstrations are disruptive to the economy, civil rights, Tea Party, OWS protestors, & of course, striking workers must be suppressed. The government's wrecked, so the boss calls out the militia.
The more politically reliable units are made part of the new army. Since there's been violence, the militias must be disarmed, naturally. That's when they take away your guns.
It's when the economy has been wrecked by a small group of people, who then demand a bailout in order to finish off the government, when you have to worry.
This I understand about gun sales increasing. He and the Clintons have no idea about what will
happen when Oboma attempts again to attack American gun rights. It is just amatter of time as
to when this will happen. So, all you that voted for him, you will pay the price in taxes as well
items such as this.
I noticed within an hour of market open yesterday......
Smith/Wesson was heavy and hot as hell.
I absolutely agree with "kneejerk reaction...none of the indicators justify the jump in price.
Banning guns will not ban criminals. Guns are only dangerious in the hands of those who don't know how to handle them or those who intend to use them to kill.If you change the heart of the person to a heart of love and compassion,then you have control of guns,baseball bats,knives,hands,cars and everything else used for killing.And if you let Him, God can change the heart.
A few things to remember when talking about guns.
1) The state of Vermont (obviously a hotbed of gun violence and insurrection and the home of Howard Dean) has very few limitations on firearms ownwerhip and does not have an eceptionally high amount of crime involving firearms. By the way the people of Vermont are no crazier than the folks in Massachusetts (next door) where buying anything firearms related is a pain in the ****.
2) It is still possible to purchase a firearm (long gun) at a New York gun show since they now do NICS checks on the spot. Purchasing a pistol is more involved.
3) New Jersey has very strict laws on firearms (and I believe no gun shows) and people are still bing shot in Newark, Patterson and from one end of the New Jersy Turnpike to the other.
4) For all you yokels out there who are on the holy anti-gun crusade, ownership of full automatics have been severly limited for several decades. Other than police they are mostly owned by well to do collectors because they are very expensive.
5) Most of the persons who want to limit firearms ownership do not know what they are talking about.
6) The NRA still has it's uses and is not always wrong but they are way too shrill and often seem to be an organization of firearms manufacturers and gun dealers. They use way to much hysteria and not enough thought. Wayne La Pierre, get a grip on yourself!
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