Joe Biden won’t be inaugurated as president for almost two months, but investors would do well to use this time to consider the potential impact his policies would have on certain industries.
Firearms manufacturers are certainly in the crosshairs as both the Democrat’s campaign website and his stump speeches have specifically targeted the industry. So let’s see what a Biden presidency might mean for gunmakers and potential sales. Industry observers dubbed former president Barack Obama the greatest gun salesman ever because sales soared during his administration due to fear he would enact strict gun control legislation. FBI criminal background checks more than doubled during his eight years in office, rising from 12.7 million in 2008 to over 27.5 million in 2016.
The industry went into a three-year slump following Donald Trump’s upset victory four years ago. Yet in 2020, background checks are rocketing to record levels again, surpassing even the heights reached during his predecessor’s administration. Through October, the FBI says the National Instant Criminal Background Check System has already performed 32.1 million investigations. Notably, while sales began rising in early 2019, the trend markedly accelerated in March of this year as riots and civil unrest broke out across the country. The National Shooting Sports Foundation says background checks jumped 80% that month and have remained at elevated levels each month thereafter. [full article]