Okay, it may not be a Shane moment, but the retirement of this country's greatest gun salesman ever is hurting the Index.
Two national retailers dependent on hunters reported second-quarter results that were dinged by a noticeable dropoff in gun sales.
Dick’s Sporting Goods lost more than $700 million in value after it reported less-than-expected second-quarter same-store sales, dragged down by a “weakness in hunting” and other areas.
The sales decrease cratered Dick’s shares by 23 percent, to $26.87, after they hit a 52-week low earlier in the day.
FBI background checks for gun purchases have fallen more than 10 percent since Election Day.
“There is no concern about any gun reform right now based on the political situation that is in Washington today,” Belitsky said. “And the inventory’s backed up.”
As a hunter, I'll say that Obama and his frenzied allies didn't affect my own buying habits: I prefer single-shot rifles, bolt actions, and revolvers over the semi-automatics that the Obamites are so fretted about, but, I'll admit that, had Hillary been elected, I'd probably have gone out and purchased at least a couple of AR-15s, just in case she'd manage to ban them. But I'm probably the exception: most of my shooting friends have been stocking up since 2008, so investors in gun manufacturers may have to wait a few election cycles before they see robust returns again.
(Quality) guns last forever — I'm currently shooting a Winchester Model 1912 20 gauge, manufactured in 1913, that's as good as the day it was made — so fear of confiscation and banning manufacture are the two driving forces of this market. Until then, I wouldn't look for growth.