Article Link: http://money.cnn.com/2017/10/02/investing/las-vegas-shooting-gun-stocks-sturm-ruger-american-outdoor-brands/
While the shooting in Las Vegas is no doubt a tragedy, it did help the stocks of some gun manufacturers to rise. This is a trend that can unfortunately be seen after mass-shootings have taken place. This is because gun enthusiasts worry the government is going to impose tighter and tougher restrictions on gun ownership after a mass-shooting. With these fears in mind, consumers rush to purchase firearms before they can no longer legally do so.
Mass-shootings are not the only thing that has boosted gun sales and gun manufacturers stocks in the past. During the previous administration and during this past election, gun sales were up and looking good. While Obama was in office, many people worried that they soon wouldn't be able to exercise their second amendment right due to new regulations. This caused people to purchase firearms in droves. Furthermore, since most people assumed that Hillary was going to win the election (you know what they say about assuming), people again ran to their local gun stores because they were fearful of a president who would greatly restrict their right to bear arms. After Trump won the election, gun sales drastically dropped off since people didn't have to worry about tighter regulations with a NRA-backed candidate in office.
The shooting in Las Vegas creates some interesting topics. I expect the demand for guns to increase, however the supply to be constant. I say this because the potential future restrictions could scare away the production of guns. I feel like the sellers should drop prices now to sell inventory. On the other hand, raising the prices now could create massive gains before laws are passed.
ReplyDeleteThis leaves me with these questions for you:
Do you think major public events will be less attended in future months?
What regulations should be put on guns?
This is an interesting topic that I did not think about before. I wonder if any other products increase in sales after mass shootings; for example, bullet proof vests. I also wonder if the increase in sales could also be because of fear and people wanting to fight back or be able to defend themselves.
ReplyDeleteBased on your assessment of this article the Gun industry seems to really be affected current events similar to most industries. Rachell brings up an interesting point about other industries that are affected by mass shootings. What came to mind personally is how tourism will be affected. Las Vegas as we know is a huge weekend destination for people all across the world to gamble and see amazing shows. This could have an impact on Vegas economy in the short term until people start to feel more comfortable visiting again. This could've happened at other events and shootings seem to be happening a lot more often within the past 10-20 years. I'm going to Vegas in December and I know this event has really opened my eyes to the reality of these terrors.
ReplyDeleteHonestly, I don't think Las Vegas will be impacted. Orlando hasn't, after it suffered the (at the time) deadliest shooting in history. I think most Americans have accepted that due to the number of guns, we're not safe anywhere, so concerts/clubs/Las Vegas/etc won't be affected.
ReplyDeleteIt makes a lot of sense that people would buy guns while they can, before new regulations come out. However, it is interesting that people who exercise the second amendment, don't change their minds about guns once a tragedy like this occurs. It seems like a tragic mass-shooting like the one in Las Vegas, would cause gun owners to change their opinions on allowing people to bear firearms. Personally, I think it would be beneficial to have stricter gun regulations to try to prevent tragedies like this from happening.
ReplyDeleteWhile it is true that the fear of restrictions do cause an increase in gun sales, I believe there is another outlying factor in what causes sales to go up. Many Americas, gun enthusiasts or not, get a sense of fear when they see a legal firearm owner at the center of such a mass tragedy. This creates a sense of fear for many who do not own guns, and a certain portion of these people feel the need to protect themselves. While a fear of gun restrictions is true, gun sales always prove to rise from many different aspects. Will restrictions really make a difference on how many guns there are in the world?
ReplyDeleteI remember vividly the cycle everyone gets caught in where I am from in southern Ohio. There would be some event involving a mass shooting, everyone would worry the government would increase restrictions so they would either buy more guns or ammunition. Stores simply couldn't keep their shelves stocked. Then the process would repeat itself because of the spread of false facts or fake news through Facebook. I do not see this cycle being broken unless we completely outlaw firearms.
ReplyDeleteThis is definitely a controversial and interesting topic. I agree with the fact that the people are scared that their right to bear arms is threatened with more of the mass shootings that occur. I think that it is important to take note in the fact that the stocks rise when there are mass shootings. Maybe more people feel threatened and feel the need to buy guns in order to protect themselves. I think that this topic is interesting because it is a very peculiar reaction to a tragedy. I think that it makes sense that people buy guns after tragedies like this because they do indeed feel that the government will restrict or take away rights with guns.
ReplyDelete