Pay close attention to gun stocks.
With demand only gaining momentum, related stocks could fire to new highs.
With Joe Biden in the White House, there’s concern he could enact legislation to potentially curb the Second Amendment. In fact, he’s already said he would ban “assault weapons, ban high-capacity magazines and introduce universal background checks in a bid to confront what he called America’s ‘gun violence epidemic,’” as reported by Newsweek.
Fueling momentum, the FBI just reported that background checks for firearms were above 4.31 million in January—the largest monthly tally. “That’s undoubtedly connected to President Joe Biden’s plans to attack the firearm industry by undoing and rewriting regulations and executive actions to target the firearm industry,” Mark Olivia, director of public affairs at the National Shooting Sports Foundation said, as quoted by Zero Hedge.
With that, investors may want to consider gun-related stocks like Smith & Wesson (SWBI), Sturm, Ruger & Co. (RGR), Vista Outdoor (VSTO), American Outdoor Brands (AOUT), and Ammo Inc. (POWW).