Gun control has been one of the biggest talking points of the Obama administration, and it appears that vehement discussion is going to continue through the end of his time in the White House.
And although Obama strives to tighten gun control and make it harder to obtain guns, he had a very opposite affect on guns this week.
Here’s what Obama did, and how he accidentally boosted gun stocks strongly…
One of the hottest stocks of the year and a gun manufacturer and vendor, Smith and Wesson (SWHC), was more than happy to see shares jump more than 5% on Monday.
The same happened for the similar Ruger (RGR) firearm company.
But why?
Well, these stock jumps came on the back of a Sunday speech in which President Obama called for more gun control. Obama made this plea at least partly in response to the December 2nd shootings in San Bernardino.
And it appears that the gun stocks, like the ones I mentioned above, aren’t slowing down immediately.
For SWHC, Tuesday was another significant climbing day as shares rose from $20.44 at Monday’s close to $21.39 by the end of trading on Tuesday – a gain of another 4.6%.
Obama clearly didn’t have the affect he wanted, at least in the immediate term.
But it also looks like these gun designers, manufacturers, and sellers are doing quite well in the intermediate term as well…
SWHC is up over 110% on the year, and RGR is following along with a 65%+ surge in 2015.
Plus, SWHC just revealed a very positive earnings report that shows everything headed in the upward direction for them.
But to go back to the past few days, is there anything we can take away to use in the future?
In general, guns tend to get a boost after a mass shooting and a call for stricter gun control by the President (these things normally happen at the same time). And we just experienced an accurate example of that.
Keep this in mind – knowledge is power.
