In the aftermath of the Sandy Hook tragedy, investors aimed to hold firearm manufacturers accountable for producing the weapons used in this heinous act. However, subsequent rising sales suggest this initiative fell short. Rommel Dionisio, an analyst at Wunderlich Securities, recalled, “In the wake of Sandy Hook, a defining event in the industry, high-profile endowments and state pension funds declared their wish to divest. This coincided with a significant surge in firearm sales.”
Unlike the reactions to previous shootings, the horror of the Sandy Hook massacre prompted a shift in investor attitude towards gun manufacturing corporations. These entities started being perceived as “sin” stocks, a term commonly associated with businesses engaged in alcohol, tobacco, and gambling, albeit informally. This tagging was a byproduct of the increased public scrutiny of firearm producers and their consequential role in the series of mass shootings and regular violent acts.
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