U.S. gun stocks came under fire on Monday after the latest National Instant Criminal Background Check System data from the for handgun background checks showed that almost 400,000 fewer checks run in April than in March.The "Market" likes a stock when it seems volatile; it doesn't like a stock that seems humdrum.
What's good for America isn't always good for Wall Street.
Fewer NICS check indicate a declining market to stock brokers;
Fewer background checks = fewer sales = falling market.
"Call my broker! SELL S&W" they cry
The investors are looking at the numbers, and ignoring the culture. Guns aren't Pork Shares.
The BULLS love it, because that means they can buy stocks while the price is low, and then sell high when the crisis is over
The BEARS love it, because they can buy futures while the price is low and then sell high when the crisis is over.
Or is it the other way around?
I admit, I don't understand The Stock Market. But it's either one or the other.
Or ... possibly ... both.
All we can be sure of is that there are people who will make a profit based on a product which may or may not be more highly regulated in the future.
Or ... not.
All we can say is, there's a profit to be made based on the future/conjectural decisions by the President, and whether NICS determines that more people are buying guns ... or less.
Some days, it's more fun to be An American than other days.
This is one of those 'other days'. But I doubt that S&W is going to go out of business this week.