What if I told you that there is a direct correlation between the horrific tragedies of mass shootings and a decrease in the stock value of firearm manufacturers?
You would probably agree without putting too much thought or hesitation into it and you would be correct.
At least to a certain extent…
Although the tragedy of a shooting causes gun stocks to fall, the regulations imposed afterward often do the opposite.
Yes, firearm companies, such as Sturm Ruger (RGR) and American Outdoor Brands (AOBC), have experienced massive declines in sales, due to their association with semi-automatic weapons commonly used in mass shootings.
However, these companies tend to profit as buyers stock-up in anticipation of new regulations on gun purchases.
So what does this mean for you as the investor?
It means you should set your sights on firearm companies and shoot for making a profit!
But don’t just take my word for it.
Looking back a few years, the industry experienced record sales during the Obama administration as advocates feared restrictive gun control measures.
Now that Trump is in office, the industry has seen a significant setback because the threat of stricter gun laws have faded.
But judging by the past and the fact that history tends to repeat itself, this setback appears to be temporary.
Considering the steps retailers have taken to restrict firearm sales, it’s fair to say that an uptrend is probable for the market.
It seems that a new wave of fear appears to be forming, ready to wash over the American right to bear arms.
It’s your job to keep steady and aim for the first signs of this wave breaking into the market.
The fact that the firearm industry is in a slump is undeniable.
But this slump can be good news for you!
Due to this huge drop in earnings, stocks are relatively cheap.
For example: a single share for American Outdoor Brands currently sits around $9.
Compared to a year ago, that’s a decrease of about 70%!
Although it’s not quite time to pull the trigger just yet, expect a fluctuation in the firearm industry as tighter regulations creep closer and push the public towards purchasing more product.
When the uptrend of the market is in your crosshairs, fire away and watch your investments boom!
