Despite election night jitters, American stocks have actually fared quite well in the week following Donald J. Trump’s successful election day upset of former Secretary of State First Lady Hillary Clinton.
The Dow industrials closed at a record high on Tuesday in its seventh consecutive session of gains.
Remarkably, the historical prospect of having the NRA-backed Republican Party in control of all three branches of government has been anything but good news for gun manufacturers — the stocks of both Sturm Ruger & Company Inc (RGR) and Smith & Wesson Holding Corp. (SWHC) have dropped considerably following the election of President-elect Donald J. Trump.
Founded nearly a decade before the American Civil War, Smith & Wesson’s stock price opened on the morning of Wednesday, November 9, 2016, at $28.53 and spent the next three days of trading falling to a low of $21.02. By Wednesday evening (11/16/16), the stock was trading at $23.99, however, the $4.54 drop in stock prices represents a market value $255million loss in market value of the company since Trump has been elected president… To put this into terms folks can understand, that’s a “YUGE” loss for the company.
Things aren’t any better over at Ruger.
Sturm Ruger & Company Inc. opened on the morning after the election results were announced at $64.70 per share and closed on Wednesday evening (11/16/16) at a price of $52.35 per share.
The $12.35 drop in stock prices equates to a market value loss of $234,650,000. In just one week’s time, the company went from being worth $1,229 billion to investors to only $994 million… all at the prospect of not having a Democrat president in the Oval Office.
Though it may still be quite early to draw any hard data from the past week’s stock market movements, the investors in the stock market seem to believe the old adage — “no one is a better gun salesperson than a Democratic politician.”
The days ahead will reveal whether the post-election firearm feelings of investors were merely a bad case of indigestion or something a little more legitimate.
Who would have ever thought that the best way to curb gun purchases was to hand the Republican Party control of all three branches of government?!?
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