Shooting in Las Vegas raised quotes arms manufacturers
Quotations from American manufacturers of small arms went up after the tragic events in Las Vegas, where he had been shot more than 50 visitors of the concert country music. Experts explain the seemingly irrational behavior of the investors that after each mass shooting in the United States renewed discussions about tightening gun legislation. This leads to an increase of sales of weapons among the population, which is in a hurry to add to your Arsenal before making new ones.
Today, shares of American manufacturers of small arms continued the growth which started yesterday — the first day after the shooting in Las Vegas.
Shares of Sturm Ruger after the opening of trading rose by 0.6% to yesterday’s 3.4% and shares of American Outdoor Brands (formerly Smith & Wesson) is 0.5% to yesterday’s 3.2 per cent. American experts note that the growth of quotations of weapons manufacturers after mass shootings has become a tradition — it had happened after the shooting at a nightclub in Orlando in June 2016, after the shooting in San Bernardino in December 2015.
American experts believe that this seemingly paradoxical situation is quite logical — each time after the mass shootings in the United States renewed discussions about tightening gun legislation. The faction of the Democratic party, traditionally advocating for more stringent measures, every time it begins to develop new initiatives, and the main gun lobbyist the national rifle Association — said the fears of new restrictions on the purchase and possession of weapons in the country. In this regard, investors expect that the population will start massively purchased the weapons before the new restrictions, so the sale of arms will go up. So investors are in anticipation of rising sales of arms to invest in the shares of arms companies. However, according to Bloomberg, while in the situation with the shooter out of Vegas is still a lot unclear, and in the U.S. Congress now most Republicans. The Agency emphasizes that in November 2016, when the elections were won by Donald trump, consistently acting for more liberal gun laws, stocks, gunsmiths have gone down — against the background of concerns that people will not start to procure weapons in an emergency procedure.