Rothschild proved right again after Las Vegas massacre
Only in the US do stocks rally because everyone knows there will be much anger and anguish after each killing, but nothing much will ever be done
Baron Rothschild, the 18th century British nobleman and patriarch of the famous banking family, is credited with saying that “the time to buy is when there’s blood in the streets”.
This investment thinking extends to US presidential politics. When Barack Obama first became president, gun stocks rocketed because he was seen as a liberal committed to gun controls. Prices fell back to earth by his second term when it was clear there wasn’t much he could do to toughen gun laws. When Donald Trump, a friend of the gun lobby, entered the White House, share prices tanked.
This investment logic wouldn’t have worked in any other country. After a mass shooting, a government would be under intense pressure to introduce tough gun law reforms. This happened in Scotland, Australia and Norway. Therefore, if they had gun stocks, their prices ought to drop – because sales would be assumed to fall.
Only in America do stock prices rally because everyone knows there will be much anger and anguish after each killing, but nothing much will ever be done.