If you are trying to find a silver lining from the outcome of the election, and if you hold any firearm stocks in your portfolio – today was your day. My recommendation – sell high! As the DOW Jones Industrial Average has the worst day all year, losing 313 on the day, gun manufacturing stocks soared! The green line above depics Smith and Wesson’s (SWHC) share value and the blue line is the DOW Jones graph for the day. SWHC rose nearly 10%! This is a fear based drive up, and will probably not last, it is interesing though. There was speculation that if Romney won, the coal companies and banks would rise, and because President Obama won, there has been a run on guns assets.
Do you own any firearm stocks? Do you think they will continue to rise, given the gun rights concerns this administration brings? Do you think all this worry is for nothing? It has been said that no politician is going to touch gun rights, as this is an issue that crosses the electorate. Blue Dog Democrats, Republican, Libertarian, they all love their guns. Let me know your thoughts on the topic!