Has the ‘gun bubble’ popped?

Has the ‘gun bubble’ popped? David M. Levitt at Bloomberg thinks so, and I think with good reason (see chart below).

Peak Gun – Bloomberg

Sturm Ruger and Smith & Wesson are the only two publicly traded U.S. gunmakers. Their sales have plummeted (down 13.4 percent and 23 percent, respectively) and stock values each cut by more than one-third.

Levitt relates the spike in gun sales to to Obama–namely, fears on the part of gun owners that Obama’s anti-gun agenda would gain ground. The failure of his agenda to get off the ground, then, explains the sudden drop.

I think he’s right, not in the least because I know people who bought guns for that very reason.


One Comment

3boxesofbs August 29, 2014 Reply

The bubble has popped…but how many companies would still love to have the sales that firearm related companies are getting?

Bob S.

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