Girls Gun Wild: Firearms Sales Are Surging–And So Are The Stocks $RGR $SWHC
- Posted by blonde
- on April 2nd, 2012
Sturm Ruger’s( $RGR) announcement that they are suspending new orders draws into a deeper “guns before butter” discussion for Joe SixPack consumer…1. The biggest increase in demand for 2011-12 is for handguns2. Background checks were up 14% for 20113. Volume from gun shows increased dramatically as a result of many new powerful firearms introuduced in 20114. Total unit production for 2011 was up 23%, yet demand has increased in 2012 to the point to suspend new orders…5. Total background checks by the FBI for gun sales was over 15MM in 2011, almost doubling the previous record of 8.5 million in 2003
This rise in gun sales is definitely evidence of fear out there on behalf of the American consumer; and much of that relates to violence/theft increasing as a result of the poor economy… to riff on some economic theory (Geek alert!) One could assert that Americans are exhibiting a protectionist, “Guns PROTECTING Butter” type of mentality here. There’s so much uncertainty out there: Massive unemployment, $4.00 gas, student loan debt, personal disposable income is waning. Seems like the cost of EVERYTHING from milk to eggs to beef and butter–it’s all MASSIVELY increased. We all feel it. Not a stretch in my opinion, to want to circle the wagons and protect what you have. The devil you know . . .
Let me lay a little Econ on you:
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Kristin Bentz is a former Wall Street retail analyst. She served as the product manager for consumer equities at Lehman Brothers. More »
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