In the last two years, gun stocks Sturm, Ruger & Company (NYSE: RGR) and Smith & Wesson Holding Corp (NASDAQ: SWHC) have both more than doubled the return of the S&P 500. Fears have never been higher concerning a potential Hillary Clinton presidency and the recent rise in high-profile mass shootings.
Gun enthusiast are afraid that the current climate will ultimately lead to new, restrictive gun laws. Unfortunately for gun stocks like RGR and SWHC, November will likely bring bad news no matter who is elected.
RGR and SWHC Hot Streak
Incredibly, the FBI recently reported a record 2,197,169 background checks for gun sales in July. That number broke the previous July record by nearly 600,000. July marks the fifteenth consecutive month of record sales.
Why are people buying so many guns? According to Mass Shooting Tracker, there were more people killed or wounded in shootings in June and July than in any other two months in the last four years.
If you combine that fact with the heated campaign rhetoric on guns from Hillary Clinton and other Democrats, gun enthusiasts are worried that Washington is about to crack down hard on gun sales. In the meantime, Americans are snatching up guns while they still have the chance.
RGR CEO Michael Fifer even acknowledged Clinton’s aggressive campaign rhetoric in RGR’s Q2 earnings call.
“Certainly, this is a unique time in our history, because for the first time ever, we have the nominee of a major political party, one with a very reasonable likelihood of winning the presidency… actively campaigning against the lawful commerce in arms,” Fifer said.
What President Clinton Would Mean for Gun Stocks
Fifer’s words seem…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!
