Sotomayor and your gun stocks
Posted
Oct 08 2009, 03:52 PM
by
Louis Navellier
Rating:
Supreme Court Justice Sonia Sotomayor started her first term on the bench Monday. And at the top of her docket is a case that will show how much she has changed the court's dynamic -- the case of McDonald v. Chicago, which seeks to overturn the city's handgun ban.
Some fear it could be the death of the Second Amendment as we know it.
Bing: More on McDonald v. Chicago
Me, I'm not worried about that. Sotomayor is replacing retired Justice David Souter who had been a reliable vote for the court's liberal wing. She's just a different vote on the left, not a new one. And since last term the court successfully overturned a similar handgun ban in Washington, D.C., I expect a similar result in the Chicago case.
So why should you care about all this judicial nonsense if you're an investor? Because it presents a perfect window of opportunity for gun stocks right now.
In fact, firearm bans are being overturned and gun ownership is getting easier -- but, Second Amendment lovers fear, only for the short term. They say it's only a matter of time before the Democrats in Congress and President Obama put hurdles in front of gun owners. So they're racing right now to buy guns, and gun stocks are seeing booming sales and profits as a result.
Look at the numbers -- just a few weeks ago, an FBI report indicated background checks for firearms are up double-digits compared to 2008. That means prospective gun owners are getting approval to buy -- and they're purchasing now.
There have been rumblings, for example, that Democrats in Congress are looking to revive a Clinton-era assault weapons ban, but they simply have too much on their plate right now. So gun buyers are rushing to purchase weapons that could fall under a new form of this law.
So how can you cash in on this trend? By buying gun stocks. My two favorites right now are Smith & Wesson (SWHC) and Sturm, Ruger & Co. (RGR). Both stocks have almost doubled since January of this year. I expect strong sales to continue across the next several months.
SWHC and RGR are two gun stocks to consider buying now -- see the complete list of "Anarchy Stocks" here.
At the time of publication, Louis Navellier held positions in Smith & Wesson and Sturm, Ruger.
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