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Tags: Gun | sales | stocks | killings

NYT's Sommer: Gun Sales, Stocks May Soar in Wake of SC Killings

By    |   Tuesday, 30 June 2015 09:02 AM EDT

The shooting deaths of nine people at a South Carolina black church will spark a decrease in gun sales and thus depress the shares of gun makers, right?

Not exactly, says New York Times reporter Jeff Sommer. "There is a very good chance that sales of guns and ammunition will surge and that shares of publicly traded gun companies will, ultimately, rise," he writes. "It has happened before."

Sommer cites the 2012 killing of 26 people at a school in Newtown, Conn. After that, President Obama sought stronger gun control laws, and public pension funds dumped some gun company stocks.

But Congress rejected stricter gun control, and publicly-traded gun companies thrived. In the year following the Newtown shootings, Americans bought more guns than ever before, according to the National Shooting Sports Foundation.

Smith & Wesson and Strum, Ruger have outperformed the S&P 500 since the Newton killings, returning a whopping 77 percent and 67 percent respectively this year alone. That compares to 3.1 percent for the S&P 500.

As for the stock market as a whole, it's headed for a major slide, as the Federal Reserve begins to curtail its massive easing program, says international investor Jim Rogers, chairman of Rogers Holdings.

The Standard & Poor's 500 index on Monday dropped 43.85 points, or 2.1 percent, to 2,057.64, less than 4 percent below its record high. The Dow Jones industrial average lost 350.33 points, or 2 percent, to 17,596.35, and the Nasdaq composite fell 122.04 points, or 2.4 percent, to 4,958.47. The losses wiped out all the gains for the Dow and S&P 500 indexes this year.

"This is the first time in recorded history that all the major world’s central banks are printing staggering amounts of money," Rogers told MarketWatch.

"Now the world has this huge artificial ocean of liquidity. The people getting the money are having a wonderful time. But when it ends, it will be very nasty. The idea that the solution to too much debt is more debt is mind-boggling."

The economy has been in recovery mode since June 2009, and the S&P 500 has tripled since March 2009. But, "we have had economic slowdowns every four to seven years since the beginning of the Republic," Rogers said.

"We’re overdue for another problem. When this artificial sea of liquidity ends, we’re going to pay a terrible price."

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StreetTalk
The shooting deaths of nine people at a South Carolina black church will spark a decrease in gun sales and thus depress the shares of gun makers, right? Not exactly, says New York Times reporter Jeff Sommer.
Gun, sales, stocks, killings
413
2015-02-30
Tuesday, 30 June 2015 09:02 AM
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