Gun Manufacturers Are Shooting Higher

Pun intended. I have jokingly told many of my friends over the last few years to buy a gun. Although the joke was serious in the sense that I was trying to convey the nature of what could lie before us. Joking aside, one must remember that sustained periods of economic underperformance lead to increased volatility, one of the consistent themes on this blog. Remember financial market volatility is simple a reflection of volatility in underlying societies and economies.

I grew up in a small farming community so I tend to think I have somewhat of a reasonable contact list to develop an anecdotal perspective on the gun market from collectors, hunters and farmers. There is ample evidence the gun trade is booming right now.

Above is the stock of gun manufacturer Smith & Wesson. The price has more than doubled in a few weeks on heavy volume. Frankly, gun stocks, although somewhat thinly traded, may provide a reasonable hedge just as their products do. Possibly a safer hedge than gold.