The market reacts to the Presidential election.
Any number of articles can be read on the subject. However what does the market think is good?
One particular example is instructive. The Democrat position on gun control is to at least suggest that it will be introduced. The fact that this version of gun control falls a long way short of preventing people buying guns, it should at least invoke the prospect of a restriction on business for arms retailers.
Trump’s position is clearer
“Defend the Second Amendment of our Constitution. The right of the people to keep and bear Arms shall not be infringed upon. Period.”
So good news for gun manufacturers?
The share price of Sturm Ruger & Co. and Smith and Wesson are shown below, graph ending on Nov. 9.
The explanation is that Trump has no intention of controlling guns. This is good for business long term, a least for the next 4 years. Noises from Clinton about gun control would have potentially resulted in a rush to buy guns in the short term, but damage to long term business interests.
This is very instructive when news is presented in the form of market reaction. Long term, sustainable business is of no interest to them.