Just three days after President Elect Donald Trump was announced as the projected winner of the 2016 presidential election by the Associated Press, we’ve got our second measurable societal Trumpian impact.
The Trump effect has caused gun stocks to plummet.
Sale of firearms began dropping sharply the morning after the election. The reason seems to be that gun companies had enjoyed healthy sales until the election results became locked and loaded on Wednesday morning.
Firearms manufacturers feared former Secretary of State Hillary Clinton would win the presidency, and that she would tighten gun restrictions. Gun enthusiasts were stocking up.
Now, with Trump going to the White House, on the condition of the Electoral College entering their votes as expected on December 19, gun owners are breathing a sigh of relief.
They’ve also stopped buying guns.
The two largest gun sellers in America are Ruger and Smith and Wesson. They were also the hardest hit. Both companies have seen approximately a 15 percent down turn in their business.
Although gun sellers and manufacturers are learning to diversify by adding complimentary outdoor gear and equipment to the plethora of fire power they offer.
However, if you dabble in the stock market, now is the time to invest in the firearms industry. Many gun owners believe they dodged a bullet (pun intended) with Hillary Clinton losing the election.
However, several states have enacted their own legislation. California’s Proposition 63, for example. This law and others like it, would require more extensive background checks.
Thus motivating gun owners to stock up before they have to own up.
The result would be an uptick in sales and growth within the industry as a whole, thereby giving you, the investor, a windfall.
So, although it may seem Trump’s promise to expand gun ownership protection would be a good thing for gun companies, it isn’t for their bottom line. People tend to buy guns when they feel like their right to own them is threatened.
So for many seasoned investors, the dip in gun sales after Trump won is not too surprising.
Here’s a tweet from Bloomberg which gives us a nice summation of the low gun sales after a President Elect Trump outcome:
Donald Trump's surprise victory came with immediate pain for the firearm industry https://t.co/cwpUvuW6B2 pic.twitter.com/RIpLqZNgRk
— Bloomberg (@business) November 11, 2016
Photo by Reese Via Flickr CC-By-NC-2.0.
