Are Gun Stocks Ignoring Obama and Congress?
The debate over firearms has ignited a wave of emotions and political rhetoric over the past several months, but investors in gun-related stocks appear to have steady hands.
Earlier this year, President Barack Obama and Vice President Joe Biden rolled out a wide-ranging list of executive actions regarding gun control. Obama also called on Congress to expand background checks on all gun sales, ban military-style assault weapons, and ban capacities of more than 10 rounds. After months of discussions and finger pointing, Congress did not answer Obama’s call.
A bill aimed at expanding the system of background checks failed in the Senate last week. It received only 54 votes, six votes short of the 60 needed to advance. Although the bill had co-sponsorship from both political parties, five democrats broke from party lines, and only four GOP senators voted in favor of the bill. The Senate also blocked a proposal to ban semiautomatic rifles and high-capacity ammunition magazines.
A visibly angry Obama gave a speech shortly after the Senate’s decision. He said, “So all in all, this was a pretty shameful day for Washington. But this effort is not over. I want to make it clear to the American people we can still bring about meaningful changes that reduce gun violence, so long as the American people don’t give up on it. Even without Congress, my administration will keep doing everything it can to protect more of our communities…but we can do more if Congress gets its act together”…