Gun stocks, gun sales jump as Biden's lead grows

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Investors are pushing up shares of gun-makers Smith & Wesson and Sturm Ruger as Democratic candidate Joe Biden leads in the polls ahead of the November election…

And a presidential victory for Biden and running-mate Kamala Harris, both who favor tighter gun regulations, is likely to keep that rally going, according to analysts.

Biden has promised to prohibit the sale of military-style weapons and high-capacity magazines, similar to a ban that expired in 2004.... And promised to require owners of military-style weapons to either sell them to the government or register them with the government.

New regulations could easily be passed if a Biden win also coincides with the Democrats taking the Senate, since they already have the House.

Fearing a likely clampdown Americans have been rushing out to stock up on guns.

Federal background checks, a proxy for firearm sales, surged to a record 28.8 million in just the first 9 months of the year, topping the previous record of 28.4 million set last year.

But it’s not just a possible Biden win that’s driving gun sales. Gun makers say fears related to the pandemic, social unrest in several U.S. cities and calls to defund the police have all led to a bump in sales this year.

That's why Hudson Valley Nubian Gun club member Gahiji Manderson became interested in guns.

"Self-preservation is universal law. We should be able to protect ourselves. We're not looking for trouble, but to be able to protect ourselves if trouble comes towards our way."

Manderson is part of a group of non-traditional gun buyers: Blacks, liberals, and women have joined in as new buyers.

First-time buyers made up 40 percent of gun sales so far this year, according to a survey of gun shops by the National Shooting Sports Foundation.

Shares of Smith & Wesson are already up 135% this year, while Sturm Ruger has rallied 51%.

Even if Biden loses, analysts say tensions are so high that many Americans will continue to feel the need to buy a gun for self-defense and that should keep gun sales and gun stocks moving higher.