Arming Your Portfolio For Gun Legislation

If you type "Americans love" into Google Search, auto-complete fills the blank with "guns." "Pie" was the closest second in similar searches.  The American love affair with firearms has been one of our most contentious "rights." And a profitable, virile, industry. [Related: Dark Side of 3D Printing: Gun Prints Are Becoming More Advanced]

Recent tragedies have seen a groundswell of demands for gun control. President Obama is at the forefront of the renewed sentiments. His proposed initiative to reduce gun violence includes more stringent background checks and a reinstatement of the ban on assault weapons. The NRA, which maintains financial support from gun manufacturers, has wasted no time labeling the president "an elitist hypocrite" for employing a well armed secret service at his disposal.

Though gun-toting enthusiasts and their sponsors voice concerns, early investors in gun-related stocks have been rejoicing.  Firearm manufacturer, Smith & Wesson (SWHC), is up 7.21% this week. Sturm, Ruger & Company (RGR) has also been thriving, gaining 10.42%.

Check out the trend in quarterly sales and share prices below:

Columbine, Virginia Tech, Aurora, and now Newtown incited public outcry against firearms, putting gun control on the national agenda. But in doing so, they've also helped the gun industry grow to a roughly $3.5 billion a year institution. Mental health professionals often appear after major acts of violence to deconstruct the killers and warn of copy cats. Even bad publicity seems good for guns.