As Post-Election Markets Plummet, Firearms Stocks Surge
As Dow Jones, S&P 500 and Nasdaq stocks plummeted the day after President Barack Obama was re-elected, shares in two...
As Dow Jones, S&P 500 and Nasdaq stocks plummeted the day after President Barack Obama was re-elected, shares in two major firearms companies — Smith & Wesson Holdings and Sturm Ruger & Co. — rose sharply in value.
Smith & Wesson’s stock increased by 9.6 percent, closing at $10.37 on Nov. 7. Thus far in 2012, Smith & Wesson’s stock has gained 135 percent in value.
Sturm Ruger & Co., whose stock has gained 43 percent in value this year, closed up 6.8 percent at $47.68 on Nov. 7.
Analysts expect the trend to continue, speculating that gun enthusiasts will stock up because they fear a second-term Obama Administration will impose tougher gun laws and lobby for a new assault weapons ban.
“The re-election of President Obama should drive political firearm sales,” Benchmark & Co analyst Mike Greene told Michael Bastasch in his Nov. 7 article in The Daily Caller.
“While we maintain our view that these political sales do not represent the entirety of recent firearms sales growth,” Greene said, “we expect that with President Obama’s re-election these sales could continue well into his second term.”
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— UPDATE 1-Gun maker shares surge on Obama re-election