Gun Sales Are Soaring, So Why Are Gun Stocks Languishing?

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that 3.44 million background checks for gun sales were conducted in February, down from a record of 4.31 million in January – but both months recorded higher checks than in comparable periods last year. Justin Anderson, director of marketing at Hyatt Guns in Charlotte, N.C., thinks “fear” was one of the primary drivers of gun sales last year, as a combination of factors led to record gun sales that are continuing: Covid-19, political unrest, and riots throughout the U.S.

” Trainer adds that gunmakers might also be hurt by the refusal of some institutional investors and pension funds to invest in these companies. “Investors are more [environmental, social, and corporate governance] conscious than ever — gun stocks may be considered ‘vice’ stocks by many investors,” he says.As gun sales surge, the industry faces a shortage of ammunition. Anderson of Hyatt Guns explains the current shortage was caused by enormous demand from new gun owners last year.

 

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