Doomsday Expectations Growing

In a piece that would be hilarious if it wasn't serious, Bloomberg discloses that as a result of crushed consumer confidence, more and more Americans are preparing for the metaphorical (and literal) end of days.

"A growing number of Americans are stocking the basement with Spam and
marketable gold, while they peek out from behind the curtains with their firearm
of choice,” analysts led by Chris Mier in Chicago wrote in a Feb. 26 note.
“Hormel’s plants are now running on weekends to keep up with demand."

As a "bizarre indicator" of end of days, Bloomberg shows a chart comparing the YTD returns of gold, gunmaker Strum Ruger and Spam shares, compared to the S&P500, juxtaposing it with consumer confidence.

Solaris Asset Management CIO Tim Ghriskey says, “If people believe the end of the world is coming and we’re in for anarchy, people are going to load up on weapons and Spam for their fallout shelters." Not surprisingly, Strum Ruger Q4 revenue jumped 72%, with a comparable ramp up in sales for Smith & Wesson. One could argue Q4 sales increase on expectations of stricter gun laws by Obama, however as analyst Eric Wold says "In recessionary times, people get concerned about safety, concerned about potential break-ins. You see gun sales ramp up on that."

Some more random musing by Paul Kedrosky and his take on Pascal's wager in light of a possible apocalypse here.

Sphere: Related Content

Bookmark this post with:

• 
• 
• 
• 
• 
• 
• 
• 
• 

Print this post