The slump in US gun manufacturer's share prices following Trump's election is somewhat counter-intuitive.
This is yet another example of how, even if you predict the big stuff correctly (Trump's victory), you can't always foresee the investment outcomes.
When advising on investments for clients we tend to avoid trying to make these big calls and focus instead on constructing diversified portfolios that are not reliant on any one particule outcome.
The election of Donald Trump as US president has rocked the nation’s gun trade, sending shares of firearm makers sharply lower amid predictions that consumers will slow down weapon purchases with a Republican in the White House. Firearm makers have profited during the nearly eight years of Barack Obama’s administration on fears — misplaced, in the end — that he would tighten gun controls. So great were the concerns that firearm sales tended to jump after mass shootings such as the 2012 Newtown school massacre.