Home » conflict sin stocks » Guns Could Still Be A Good Play

Sin StocksIn an article posted at 24/7 Wall Street entitled Is The Gun Trade Coming To An End?, the writer points out that two gun stocks have risen considerably in the past couple of years and he briefly examines why this might be.

Smith & Wesson (SWHC) and Sturm, Rutger and Company (RGR) have risen 150% and 200% in less than 2 years but those numbers are starting to flatten out, he writes.

The writer then floats a few reasons for the growth and possibly imminent decline in guns:

  1. An increased need for self defense
  2. Economic concerns that breed fear
  3. But the reason that the writer believes in the decline of guns is: People concerned about changes in gun policies if Obama was voted back into office.

I get that gun owners could be concerned about Obama making it more difficult to get guns. But what seems strange to me is that, if this is true, then why did the numbers back off so soon after Obama entered office? Wouldn’t the numbers continue to spike upwards until gun legislation is introduced?

So I disagree with the writer of this article. I think gun sales right now are driven by fear, which is catalyzed by economic concerns. So I think we’ll see gun sales continue to climb as long as economic concerns are a reality.


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