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Barack Obama's election and reelection were boons for the gun industry, and firearms manufacturers were gearing up for another banner year with the expectation of a Hillary Clinton victory.
Gun sales have been hitting records around Black Friday, the holiday season and, sadly, after mass shootings that make headlines around the country. Some of this is driven by people's feeling that they need to protect themselves, but another big factor is the fear of scarcity. People see a Democratic electorate or a tragedy like the Sandy Hook shootings and assume more restrictive gun regulations are coming down the pike, so they rush out and stock up.
In Japan, traders working a foreign exchange desk watch U.S. election results. The Nikkei index fell more than 900 points as Trump's win became real. Toru Hanai—ReutersThe Philippine Stock exchange fell to a 7-month low on Trump’s win. In this photo, a Filipino trader looks at the electronic board showing a downward trend during trading at the Philippine Stock Exchange at the financial district of Makati, south of Manila, Philippines, Wednesday, Nov. 9, 2016. Aaron Favila—APPedestrians look at an electronic stock board displaying the Nikkei Stock Average outside a securities firm in Tokyo on Nov. 9, 2016. The yen strengthened against the U.S. dollar, which will make it more difficult for Japan to fight off its ongoing inflation problem. Tomohiro Ohsumi—Bloomberg via Getty ImagesAs news that Clinton lost major battleground states was confirmed, billions were wiped from Australian Securities Exchange, as it was described as "a sea of red." David Gray—ReutersOne of Trump's biggest campaign promises has been to crack down on the Chinese government, who Trump says weakens the value of China's renminbi, giving it an unfair advantage in world trade. The Chinese currency rallied as the U.S. dollar's value fell following Trump's win. Wang Zhao—AFP/Getty ImagesAsian markets were up and running during the wee hours of the morning in the U.S., when Trump's gain on electoral college votes surpassed Clinton's. Hong Kong’s Hang Seng index fell to 2.6%. Isaac Lawrence—AFP/Getty ImagesGulf State markets -- such as the Qatar Stock Exchange being monitored by a trader shown here -- fell after news of the Trump victory. These markets are heavily exposed to changes in the oil market, and Trump has promised to make America an even bigger fuel and oil producer. Naseem—ReutersA trader watches Trump on TV as Dubai’s stock market falls. The one upside for traders there? The U.S. doesn't do much trade with countries like Dubai, so Trump's protectionist trade policies may not impact them directly. Ashraf Mohammad Mohammad Alam—ReutersIn Germany, the DAX exchange fell 3% after trading began, following news of Trump's victory. Michael Probst—APTraders on the floor at ETX Capital in London watched as Trump was elected. The UK markets suffered huge losses in June, after their own surprise Brexit referendum results sent stocks into a tailspin. Chris Ratcliffe—Bloomberg via Getty ImagesA man looks at a screen displaying news of markets update inside the Bombay Stock Exchange (BSE) building in Mumbai, India, November 9, 2016. Danish Siddiqui—Reuters
"Fear of gun regulation... has been a major driver of gun sales over the past eight years," Wedbush analyst James Hardiman told Bloomberg. The FBI has already processed nearly as many background check requests — 22.2 million — in first 10 months of 2016 alone as it did in all of 2015.
Now things are likely to be different, since people not expecting gun control legislation from a Republican president and Congress don't have an imperative to rush out and buy guns. While Trump touted his endorsement from the National Rifle Association frequently on the campaign trail, he's not doing gunmakers any favors by winning the election. While industries like construction, biotech and private prisons saw their stocks rise on Wednesday, companies like Smith & Wesson and Sturm Ruger & Co. fell sharply, dropping by 15% and 16%, respectively.
