In the wake of last week's shootings at Sandy Hook Elementary School, investors are selling off shares of gunmakers Smith & Wesson (NASDAQ:AOBC) and Sturm, Ruger (NYSE:RGR). Guns and ammo retailers aren't faring much better, as shares of sporting-goods chains Cabela's (NYSE:CAB) and Dick's (NYSE:DKS) continue to slide, while Wal-Mart (NYSE:WMT) -- long known among shooting enthusiasts for having some of the best prices on ammunition around -- are suffering as well.
With Congress moving swiftly to write new regulations for gun sales and ownership, this all seems a logical reaction to the headline news. Yet at the same time as investors rush to sell their shares, gun buyers are rushing to buy firearms -- before any new laws hit the books. Could it be that investors are missing a golden opportunity to "get greedy when others are fearful"?
Fool contributor Rich Smith thinks so, as he explains in today's video.