Why Gun Stocks Are Trading Higher Today
One of the most predictable trades on Wall Street is going to script on Wednesday, as stocks associated with the firearms business are trading up after a big Democratic Party win at the polls. Shares of Smith & Wesson Brands (NASDAQ: SWBI), Sturm, Ruger (NYSE: RGR), and Vista Outdoor (NYSE: VSTO) all were up double digits at noon EST after the Democrats appeared to secure two Senate seats in Georgia.
Politics is almost never as simple as pundits try to make it, but the conventional wisdom is that the Democrats favor gun control. For that reason, we tend to see a surge in firearm sales when the Democratic Party is in control, on consumer fears they need to either buy now or miss their opportunity.
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Source Fool.com
