A December 5th CNN Money report shows that purchases of stocks in firearm companies have become a staple for many investors during Obama’s presidency.
According to the report, the positive performance of such stocks suggests that “tough gun control laws” will never take hold. This performance shatters the expectations of those who held that gun violence would allow politicians to rapidly pass gun control legislation.
Instead, stocks in all manner of firearm and ammunition companies have climbed steadily since the shooting at Sandy Hook:
Smith & Wesson shares are up 56% from the 52-week low they hit just days after the Newtown shooting. Cabela’s shares have gained more than 60%. Ruger’s stock is up 82%. Ammunition makers Olin (OLN) and Alliant Techsystems (ATK) have popped this year as well.
Smith and Wesson Holding Corp, November 2013 – December 2013. Source: money.cnn.com
The author of the report believes that these stock prices show that “Wall Street (and America) still love guns.” The success of these firearm companies causes him to explain, “So don’t expect tougher gun control laws to ever take hold. The majority of Americans clearly don’t want it.”
The financial viability of firearms manufacturers has not been lost in the broader marketplace. Major mutual fund companies like Vanguard and Blackrock and firms like Capital Research and Management have increased their holdings in various firearm companies over the last year. Even firms which promised to liquidate their firearm investments in the wake of Newtown — such as Cerberus Capital Management — have been slow to do so, suggesting the extent to which “money talks” in the gun control debate.
Follow AWR Hawkins on Twitter @AWRHawkins.