Investment advice needed

[Soccerdad1995]

There is a possibility that Hillary wins the election. I believe that result will harm the value of my stock portfolio. I am looking to hedge that risk by buying some assets that should increase in value with her election. Naturally, my first thought is guns.

If I was to invest, say $20,000, what would an ideal gun portfolio look like? I am thinking that a combination of good condition used black rifles, 30 round magazines and 5.56 or 7.62 ammo might give me the highest ROI. The plan would be to liquidate these starting after the election. I am looking to minimize any loss (if the GOP wins), while maximizing the potential gain (if the dems win and Hillary starts proposing more gun control measures). Minimizing loss is also why I am thinking of buying already used guns in good condition.

What do y'all think? Is this a reasonable plan or not? I'd also appreciate thoughts on a good mix of items to buy.

[Pawpaw]

If I were in a position to do such a thing, I would put it all in ammo, preferably brand-name ammo. With firearms, you'd better know what you're doing and exactly what each piece is worth on the open market. Then you get to hope the Dems don''t manage to ban any of your inventory. There's also that pesky little FFL thing they're trying to crack down on. It wouldn't take much to claim you're in business and thus need an FFL and all the headaches that go with it.

Instead, I would stock up on ammo I know I could sell during the next "shortage". Things like 22LR, .380ACP, 9mm, .40S&W, .45ACP, .223/5.56, and .308Win.

[steveincowtown]

There is a possibility that Hillary wins the election. I believe that result will harm the value of my stock portfolio. I am looking to hedge that risk by buying some assets that should increase in value with her election. Naturally, my first thought is guns.

If I was to invest, say $20,000, what would an ideal gun portfolio look like? I am thinking that a combination of good condition used black rifles, 30 round magazines and 5.56 or 7.62 ammo might give me the highest ROI. The plan would be to liquidate these starting after the election. I am looking to minimize any loss (if the GOP wins), while maximizing the potential gain (if the dems win and Hillary starts proposing more gun control measures). Minimizing loss is also why I am thinking of buying already used guns in good condition.

What do y'all think? Is this a reasonable plan or not? I'd also appreciate thoughts on a good mix of items to buy.

I think that unless you are an FFL I would delete this post.

I believe that as a non-FFL buying and selling firearms with the intention of making a profit is illegal. I will admit that during the last Election/Crisis I unintentiaolly made a profit on a few items. I am sure someone with far more knowledge will pop in...

[Javier730]

If I were in a position to do such a thing, I would put it all in ammo, preferably brand-name ammo. With firearms, you'd better know what you're doing and exactly what each piece is worth on the open market. Then you get to hope the Dems don''t manage to ban any of your inventory. There's also that pesky little FFL thing they're trying to crack down on. It wouldn't take much to claim you're in business and thus need an FFL and all the headaches that go with it.

Instead, I would stock up on ammo I know I could sell during the next "shortage". Things like 22LR, .380ACP, 9mm, .40S&W, .45ACP, .223/5.56, and .308Win.

I would suggest investing in ammunition. Especially on "assault weapon" ammo.

I will have to admit, it annoys me a bit when I see people selling online 50 round boxes of CCI for like $50 or bulk ammo for $150-$200.

[Javier730]

There is a possibility that Hillary wins the election. I believe that result will harm the value of my stock portfolio. I am looking to hedge that risk by buying some assets that should increase in value with her election. Naturally, my first thought is guns.

If I was to invest, say $20,000, what would an ideal gun portfolio look like? I am thinking that a combination of good condition used black rifles, 30 round magazines and 5.56 or 7.62 ammo might give me the highest ROI. The plan would be to liquidate these starting after the election. I am looking to minimize any loss (if the GOP wins), while maximizing the potential gain (if the dems win and Hillary starts proposing more gun control measures). Minimizing loss is also why I am thinking of buying already used guns in good condition.

What do y'all think? Is this a reasonable plan or not? I'd also appreciate thoughts on a good mix of items to buy.

I think that unless you are an FFL I would delete this post.

I believe that as a non-FFL buying and selling firearms with the intention of making a profit is illegal. I will admit that during the last Election/Crisis I unintentiaolly made a profit on a few items. I am sure someone with far more knowledge will pop in...

Did you unintentionally raise the price of what you were selling by $100? Them numbers are a little close on the keyboard so I can see how that could happen. Kinda like when you hit o instead of n when you spelled "unintentiaolly."

[Soccerdad1995]

Good points on the FFL thing. Since the whole point is in anticipation of future restrictive laws, I probably don't want to even go down that route. Plus ammo and other items are a lot easier to store and maintain. I think I may just concentrate there.

Plus with ammo, worst case, I will have just pre-bought my shooting supplies for life (if I can't resell for some reason).

[The Annoyed Man]

What Pawpaw and AndyC said.

[JALLEN]

Just remember, an "investment" in modern parlence is a speculation which worked out well, while a "speculation" is an investment which did not.

[madwildcat]

Quick cautionary tale that worked out, then suggestions:

Guy buys a number of lowers before Obama gets elected the 2nd time, thinking "heck he may make these harder to get or they may shoot up in price". Election passes with no major changes in any prices and guy forgets he bought a bunch of lowers (he'll use them on builds eventually). Then a major school shooting happens and all of a sudden the lowers are worth 4 times what he paid for them. The only reason he made money was because of the shooting, NOT the presidential election.

Another route, and one that I think would be slightly less of an issue is to expand your collection with pieces you likely would have bought eventually anyways (for example, grabbing a set of lowers for future gun builds as AndyC suggested or a couple of the harder to find options). If the GOP wins, collection expanded and you wait quite a while before adding more. If they don't, you sell what makes good sense to. My understanding of the FFL issue is the buying and selling specifically for profit, not selling when anyone with half a brain would (i.e. selling a couple of lowers for 5 times what you paid for them). If all the prices shoot up, the federal government is going to have a heck of time trying to pin down everyone who decides to make some money from their "new" or old collections.

You could also look into the auto options which have been decent investments over the years, however these may not change significantly with a presidential change, which is what it sounds like you are banking on. This is a better long term option and has the side benefit of getting to play with an auto in your free time

And one more option you could consider that wouldn't have any major issues would be investing the money in stocks or funds of stocks known to increase when Democrats with certain agendas come into office. Ruger and S&W have had banner years since the major shootings have occurred. There are other companies that have as well.

I would be a little dubious of the ammo stockpiling option because
1. Not all that ammo is back down to pre panic pricing, meaning you could end up losing instead of gaining
2. The number of people sitting on large stockpiles this time around compared to last time means the prices likely won't go as high (simple supply and demand economics)
3. While many of the laws suggested would affect gun sales, no where near as many affect ammunition sales, and the ones that would would also make your life miserable to make any money off of selling it (i.e. laws that require something similar to an FFL to sell or track ammo sales).

Now, if you are like me and will use all all the ammo eventually anyways, then that's another story...

[joe817]

I applaud you desire to hedge your risks, if that were to happen, but I would take another route.

Common commodities like what has been mentioned, especially if you are attempting to predict market forces, would net you a marginal gain, IMO. Nothing to get wealthy from though. However, if you invest in those industries/companies/corporations that SUPPLIES those commodities(everything from primer manufacturers, to gun powder makers, cartridge manufacturers, and especially firearms manufacturers), THEN you will almost certainly assure yourself that your initial investment, will grow over time. Plus you avoid the scrutiny of the alphabet agencies, which I avoid like the plague.

Just one person's opinion, & I've been wrong before. And I stand unanimous in my decision.

[karder]

I tend to think that purchasing firearms as a means to protect your wealth in the event of a stock market crash could be a bit dubious for a myriad of reasons, which others here have touched upon. If I were to invest $20k to hedge against a financial crises and stock market implosion, I would look at precious metals or real estate. I know it is not as cool or fun as guns, but it should have less legal pitfalls.

[ghostrider]

I'd also appreciate thoughts on a good mix of items to buy.

gold, ammo, and Ruger stock :-)

NOTE: this is not financial or legal advice. I am not an Accountant, investor, day trader, lawyer etc & did not stay at a holiday inn.
:-0

[Redneck_Buddha]

Hillary tweeted that she wants to be able to sue gun manufacturers.

[Vol Texan]

My brother in law told me that he always wondered whether he should have invested in gold instead of in his stock. "But then again," he says, "if things were to get so bad that I should have invested in gold, then I guess I really should have invested in lead. So I bought bullets instead."

And now...he has more ammo than most folks I know.