Wednesday, November 9, 2016

Gun Stocks Diving After Trump Win


Smith & Wesson shares are down more than 8.5%, but have pared earlier losses of as much as 19%.

Do traders suspect that the American electorate has elected an authoritarian and the masses believe he will bring "peace to the world"?

-RW



5 comments:

  1. Obama was a huge boon to the gun business because everyone was buying on the fear they soon wouldn't be able to buy. Hillary was likely more of the same -- probably worse. People perceive that Trump won't go after the guns (big assumption, IMHO).

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  2. Unknown is quite correct here. The firearm manufacturer stocks were heading way up because people were making their purchases prior to any potential anti-gun legislation. When the election looked like it was going for Hillary, the traders bought in (expecting a huge 4th quarter, with everybody rushing out to get their firearms before her inauguration).

    As Hillary was not elected, gun buyers will not be in as much of a rush to get their firearms, and so the 4th Quarter doesn't look to be as intense. The traders then took their gains and got out. That's it. It has nothing to do with their perception (or lack thereof) of Trump's authoritarianism.

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    1. Come on Wenzel. You can do better than this.
      "Do traders suspect that the American electorate has elected an authoritarian and the masses believe he will bring "peace to the world"?"

      I come here for your insight and analysis. But even I know that sentence is completely moronic. Step your game up, Wenzel.

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    2. Come on Wenzel. You can do better than this.

      My thoughts exactly. OBVIOUSLY gun stocks are down because fears of a dismantled 2nd amendment are much less likely under trump. It is the fear of a loss of freedom that drives gun stocks high, not a need for protection.

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    3. I think you guys are missing Wenzel's sense of humor. Do you really think he thinks people expect Trump to bring peace on earth?

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