Markets
Do You Know Where the British Pound is Heading?
In developed economies around the world, it’s generally expected that currencies will retain their purchasing power over time.
While this is most often the case, sometimes there are situations in which currency markets begin acting in ways that are less predictable.
Growing amounts of political or economic uncertainty, for example, can cause a currency to experience amplified levels of volatility — an environment in which it may see bigger ups and downs than most market participants are used to.
Brexit, Currency Risk, and the Pound
Today’s infographic comes to us from BlackRock, and it focuses in on the recent volatility of the British pound to illustrate how currency risk can impact a UK investor’s portfolio, and how this risk can be mitigated through currency hedging techniques.
Currency risk is present in any unhedged portfolio that holds investments denominated in international currencies.
When currencies experience increased levels of volatility — such as the British pound over the last five years — it can make this risk even more evident, ultimately impacting investor returns.
Brexit in Focus
In the lead-up to the EU Referendum in June 2016, and certainly afterwards, it’s been clear that the sterling has decoupled from its typical trading patterns.
Sterling volatility, as you would know, is at emerging market levels and has decoupled from other advanced economy pairs.
– Mark Carney, Bank of England (September 2019)
Every twist and turn in the Brexit saga has helped stoke fluctuations in the value of the pound, especially in usually stable pairs such as EUR/GBP or USD/GBP. It is possible that these swings could continue throughout 2020, and even beyond.
What impact can these fluctuations have on investment portfolios, and what can investors do to avoid them?
Currency Risk 101
The challenge of currency risk is that it can affect returns, either positively or negatively.
In other words, in addition to the risk you are exposed to by owning a particular investment, you are also at the mercy of foreign exchange rates. This means the performance of your investment could be canceled out by currency fluctuations, or returns could be amplified if exchange rate movements are to your advantage.
For example, in a typical UK portfolio that holds 60% global equities and 40% global bonds, currency risk actually has the highest projected risk contribution:
Projected Risk Contribution (60/40 Global Portfolio)
- Foreign Exchange Risk: 4.55%
- Equity Risk: 3.36%
- Interest Rate Risk: 0.44%
- Spread Risk: 0.06%
- Total: 8.40%
When there is added volatility in currency markets, like in recent times, even a home-biased portfolio can be adversely affected. Given this, how can investors be sure they are getting a return from the underlying assets in a portfolio, instead of from unpredictable currency swings?
To Hedge, or Not to Hedge
There is a range of strategies that allow investors to hedge currency risk, but one simpler option may be to simply buy a fund (such as an ETF) that is hedged.
That said, not all investors may want to hedge currency risk. For example, an investor has a specific foreign exchange view (i.e. that a currency will go up or down in value) may want to purposefully get exposure to currency risk to take advantage of this view.
While it may not always make sense to use currency-hedged funds, they can reduce the overall investment risk on international exposures.
And if you are not so sure of where the pound is heading in coming months, now could potentially be a good time to explore such a tool.
Markets
30 Years of Gun Manufacturing in America
The U.S. has produced nearly 170 million firearms over the past three decades. Here are the numbers behind America’s gun manufacturing sector.

30 Years of Gun Manufacturing in America
While gun sales have been brisk in recent years, the uncertainty surrounding COVID-19 was a boon for the gun industry.
From 2010-2019, an average of 13 million guns were sold legally in the U.S. each year. In 2020 and 2021, annual gun sales sharply increased to 20 million.
While the U.S. does import millions of weapons each year, a large amount of firearms sold in the country were produced domestically. Let’s dig into the data behind the multi-billion dollar gun manufacturing industry in America.
Gun Manufacturing in the United States
According to a recent report from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. has produced nearly 170 million firearms over the past three decades, with production increasing sharply in recent years.
America’s gunmakers produce a wide variety of firearms, but they’re generally grouped into five categories; pistols, rifles, shotguns, revolvers, and everything else.
Below is a breakdown of firearms manufactured in the country over the past 30 years, by type:
Year | Pistols | Rifles | Revolvers | Shotguns | Misc. Firearms | Total Firearms |
---|---|---|---|---|---|---|
1989 | 1,404,753 | 1,407,400 | 628,573 | 935,541 | 42,126 | 4,418,393 |
1990 | 1,371,427 | 1,211,664 | 470,495 | 848,948 | 57,434 | 3,959,968 |
1991 | 1,378,252 | 883,482 | 456,966 | 828,426 | 15,980 | 3,563,106 |
1992 | 1,669,537 | 1,001,833 | 469,413 | 1,018,204 | 16,849 | 4,175,836 |
1993 | 2,093,362 | 1,173,694 | 562,292 | 1,144,940 | 81,349 | 5,055,637 |
1994 | 2,004,298 | 1,316,607 | 586,450 | 1,254,926 | 10,936 | 5,173,217 |
1995 | 1,195,284 | 1,411,120 | 527,664 | 1,173,645 | 8,629 | 4,316,342 |
1996 | 987,528 | 1,424,315 | 498,944 | 925,732 | 17,920 | 3,854,439 |
1997 | 1,036,077 | 1,251,341 | 370,428 | 915,978 | 19,680 | 3,593,504 |
1998 | 960,365 | 1,535,690 | 324,390 | 868,639 | 24,506 | 3,713,590 |
1999 | 995,446 | 1,569,685 | 335,784 | 1,106,995 | 39,837 | 4,047,747 |
2000 | 962,901 | 1,583,042 | 318,960 | 898,442 | 30,196 | 3,793,541 |
2001 | 626,836 | 1,284,554 | 320,143 | 679,813 | 21,309 | 2,932,655 |
2002 | 741,514 | 1,515,286 | 347,070 | 741,325 | 21,700 | 3,366,895 |
2003 | 811,660 | 1,430,324 | 309,364 | 726,078 | 30,978 | 3,308,404 |
2004 | 728,511 | 1,325,138 | 294,099 | 731,769 | 19,508 | 3,099,025 |
2005 | 803,425 | 1,431,372 | 274,205 | 709,313 | 23,179 | 3,241,494 |
2006 | 1,021,260 | 1,496,505 | 385,069 | 714,618 | 35,872 | 3,653,324 |
2007 | 1,219,664 | 1,610,923 | 391,334 | 645,231 | 55,461 | 3,922,613 |
2008 | 1,609,381 | 1,734,536 | 431,753 | 630,710 | 92,564 | 4,498,944 |
2009 | 1,868,258 | 2,248,851 | 547,195 | 752,699 | 138,815 | 5,555,818 |
2010 | 2,258,450 | 1,830,556 | 558,927 | 743,378 | 67,929 | 5,459,240 |
2011 | 2,598,133 | 2,318,088 | 572,857 | 862,401 | 190,407 | 6,541,886 |
2012 | 3,487,883 | 3,168,206 | 667,357 | 949,010 | 306,154 | 8,578,610 |
2013 | 4,441,726 | 3,979,570 | 725,282 | 1,203,072 | 495,142 | 10,844,792 |
2014 | 3,633,454 | 3,379,549 | 744,047 | 935,411 | 358,165 | 9,050,626 |
2015 | 3,557,199 | 3,691,799 | 885,259 | 777,273 | 447,131 | 9,358,661 |
2016 | 4,720,075 | 4,239,335 | 856,291 | 848,617 | 833,123 | 11,497,441 |
2017 | 3,691,010 | 2,504,092 | 720,917 | 653,139 | 758,634 | 8,327,792 |
2018 | 3,881,158 | 2,880,536 | 664,835 | 536,126 | 1,089,973 | 9,052,628 |
2019 | 3,046,013 | 1,957,667 | 580,601 | 480,735 | 946,929 | 7,011,945 |
Total | 60,804,840 | 59,796,760 | 15,826,964 | 26,241,134 | 6,298,415 | 168,968,113 |
Pistols (36%) and rifles (35%) are the dominant categories, and over time, the former has become the most commonly produced firearm type.
In 2001, pistols accounted for 21% of firearms produced. Today, nearly half of all firearms produced are pistols.
Who is Producing America’s Firearms?
There are a wide variety of firearm manufacturing companies in the U.S., but production is dominated by a few key players.
Here are the top 10 gunmakers in America, which collectively make up 70% of production:
Rank | Firearm Manufacturer | Guns Produced (2016-2020) | Share of total |
---|---|---|---|
1 | Smith & Wesson Corp | 8,218,199 | 17.2% |
2 | Sturm, Ruger & Company, Inc | 8,166,448 | 17.1% |
3 | Sig Sauer Inc | 3,660,629 | 7.7% |
4 | Freedom Group | 3,045,427 | 6.4% |
5 | 0 F Mossberg & Sons Inc | 2,223,241 | 4.7% |
6 | Taurus International Manufacturing | 1,996,121 | 4.2% |
7 | WM C Anderson Inc | 1,816,625 | 3.8% |
8 | Glock Inc | 1,510,437 | 3.2% |
9 | Henry RAC Holding Corp | 1,378,544 | 2.9% |
10 | JIE Capital Holdings / Enterprises | 1,258,969 | 2.6% |
Total | 33,274,640 | 69.7% |
One-third of production comes from two publicly-traded parent companies: Smith & Wesson (NASDAQ: SWBI), and Sturm, Ruger & Co. (NYSE: RGR)
Some of these players are especially dominant within certain types of firearms. For example:
- 58% of pistols were made by Smith & Wesson, Ruger, and SIG SAUER (2008–2018)
- 45% of rifles were made by Remington*, Ruger, and Smith & Wesson (2008–2018)
*In 2020, Remington filed for Chapter 11 bankruptcy protection, and its assets were divided and sold to various buyers. The Remington brand name is now owned by Vista Outdoor (NYSE: VSTO)
The Geography of Gun Manufacturing
Companies that manufacture guns hold a Type 07 license from the ATF. As of 2020, there are more than 16,000 Type 07 licensees across the United States.
Below is a state-level look at where the country’s licensees are located:
State | Licenses (2000) | Licenses (2020) | Population | Licenses per 100,000 pop. (2020) |
---|---|---|---|---|
Alaska | 8 | 117 | 733,391 | 16.0 |
Alabama | 40 | 276 | 5,039,877 | 5.5 |
Arkansas | 28 | 302 | 3,011,524 | 10.0 |
Arizona | 100 | 959 | 7,276,316 | 13.2 |
California | 159 | 620 | 39,237,836 | 1.6 |
Colorado | 27 | 481 | 5,812,069 | 8.3 |
Connecticut | 71 | 194 | 3,605,944 | 5.4 |
Delaware | 0 | 10 | 989,948 | 1.0 |
Florida | 131 | 1,009 | 21,781,128 | 4.6 |
Georgia | 52 | 510 | 10,799,566 | 4.7 |
Hawaii | 0 | 11 | 1,455,271 | 0.8 |
Iowa | 11 | 187 | 3,190,369 | 5.9 |
Idaho | 38 | 358 | 1,839,106 | 19.5 |
Illinois | 40 | 263 | 12,671,469 | 2.1 |
Indiana | 39 | 280 | 6,805,985 | 4.1 |
Kansas | 17 | 229 | 2,937,880 | 7.8 |
Kentucky | 22 | 211 | 4,505,836 | 4.7 |
Louisiana | 20 | 258 | 4,657,757 | 5.5 |
Massachusetts | 67 | 263 | 6,984,723 | 3.8 |
Maryland | 36 | 146 | 6,165,129 | 2.4 |
Maine | 13 | 107 | 1,362,359 | 7.9 |
Michigan | 43 | 386 | 10,050,811 | 3.8 |
Minnesota | 63 | 254 | 5,707,390 | 4.5 |
Missouri | 62 | 401 | 6,168,187 | 6.5 |
Mississippi | 12 | 190 | 2,961,279 | 6.4 |
Montana | 24 | 240 | 1,084,225 | 22.1 |
North Carolina | 52 | 628 | 10,551,162 | 6.0 |
North Dakota | 3 | 46 | 779,094 | 5.9 |
Nebraska | 15 | 91 | 1,961,504 | 4.6 |
New Hampshire | 25 | 188 | 1,377,529 | 13.6 |
New Jersey | 10 | 26 | 9,267,130 | 0.3 |
New Mexico | 18 | 179 | 2,117,522 | 8.5 |
Nevada | 45 | 276 | 3,104,614 | 8.9 |
New York | 35 | 299 | 19,835,913 | 1.5 |
Ohio | 80 | 644 | 11,780,017 | 5.5 |
Oklahoma | 37 | 423 | 3,959,353 | 10.7 |
Oregon | 55 | 226 | 4,237,256 | 5.3 |
Pennsylvania | 87 | 519 | 12,964,056 | 4.0 |
Rhode Island | 1 | 20 | 1,097,379 | 1.8 |
South Carolina | 25 | 284 | 5,190,705 | 5.5 |
South Dakota | 14 | 79 | 886,667 | 8.9 |
Tennessee | 76 | 352 | 6,975,218 | 5.0 |
Texas | 150 | 2,022 | 29,527,941 | 6.8 |
Utah | 33 | 478 | 3,271,616 | 14.6 |
Virginia | 48 | 412 | 8,642,274 | 4.8 |
Vermont | 15 | 85 | 643,077 | 13.2 |
Washington | 49 | 351 | 7,738,692 | 4.5 |
Wisconsin | 38 | 306 | 5,895,908 | 5.2 |
West Virginia | 20 | 115 | 1,793,716 | 6.4 |
Wyoming | 20 | 147 | 576,851 | 25.5 |
These manufacturers are located all around the country, so these numbers are somewhat reflective of population. Unsurprisingly, large states like Texas and Florida have the most licensees.
Sorting by the number of licensees per 100,000 people offers a different point of view. By this measure, Wyoming, Montana, and Idaho come out on top.
If recent sales and production trends are any indication, these numbers may only continue to grow.
Markets
Made in America: Goods Exports by State
The U.S. exported $1.8 trillion worth of goods in 2021. This infographic looks at where that trade activity took place across the nation.

Made in America: Goods Exports by State
After China, the U.S. is the next largest exporter of goods in the world, shipping out $1.8 trillion worth of goods in 2021—an increase of 23% over the previous year.
Of course, that massive number doesn’t tell the whole story. The U.S. economy is multifaceted, with varying levels of trade activity taking place all across the nation.
Using the latest data on international trade from the U.S. Census Bureau and the U.S. Bureau of Economic Analysis, we’ve visualized the value of America’s goods exports by state.
Top 10 Exporter States
Here are the top 10 American states that exported the highest dollar value worth of goods during 2021. Combined, these export-leading states represent 59.4% of the nation’s total exports.
Rank | State | Total Exports Value | % share |
---|---|---|---|
#1 | Texas | $375.3 billion | 21.4% |
#2 | California | $175.1 billion | 10.0% |
#3 | New York | $84.9 billion | 4.8% |
#4 | Louisiana | $76.8 billion | 4.4% |
#5 | Illinois | $65.9 billion | 3.8% |
#6 | Michigan | $55.5 billion | 3.2% |
#7 | Florida | $55.5 billion | 3.2% |
#8 | Washington | $53.6 billion | 3.1% |
#9 | Ohio | $50.4 billion | 2.9% |
#10 | New Jersey | $49.5 billion | 2.8% |
Top 10 States | $1.04 trillion | 59.4% |
Texas has been the top exporting state in the U.S. for an incredible 20 years in a row.
Last year, Texas exported $375 billion worth of goods, which is more than California ($175 billion), New York ($85 billion), and Louisiana ($77 billion) combined. The state’s largest manufacturing export category is petroleum and coal products, but it’s also important to mention that Texas led the nation in tech exports for the ninth straight year.
California was the second highest exporter of goods in 2021 with a total value of $175 billion, an increase of 12% from the previous year. The state’s main export by value was computer and electronic product manufacturing, representing 17.8% of the total U.S. exports of that industry. California was also second among all states in exports of machinery manufacturing, accounting for 13.9% of the U.S. total.
What Type of Goods are Exported?
Here is a breakdown of the biggest U.S. export categories by value in 2021.
Rank | Product Group | Annual Export Value (2021) | Share of Total Exports |
---|---|---|---|
1 | Mineral fuels including oil | $239.8 billion | 13.7% |
2 | Machinery including computers | $209.3 billion | 11.9% |
3 | Electrical machinery, equipment | $185.4 billion | 10.6% |
4 | Vehicles | $122.2 billion | 7.0% |
5 | Optical, technical, medical apparatus | $91.7 billion | 5.2% |
6 | Aircraft, spacecraft | $89.1 billion | 5.1% |
7 | Gems, precious metals | $82.3 billion | 4.7% |
8 | Pharmaceuticals | $78 billion | 4.4% |
9 | Plastics, plastic articles | $74.3 billion | 4.2% |
10 | Organic chemicals | $42.9 billion | 2.4% |
These top 10 export categories alone represent almost 70% of America’s total exports.
The biggest grower among this list is mineral fuels, up by 59% from last year. Pharmaceuticals saw the second biggest one-year increase (45%).
Top 10 U.S. Exports by Country of Destination
So who is buying “Made in America” products?
Unsurprisingly, neighboring countries Canada (17.5%) and Mexico (15.8%) are the two biggest buyers of American goods. Together, they purchase one-third of American exports.
Rank | Destination Country | Share of U.S. Goods Exports |
---|---|---|
1 | 🇨🇦 Canada | 17.5% |
2 | 🇲🇽 Mexico | 15.8% |
3 | 🇨🇳 China | 8.6% |
4 | 🇯🇵 Japan | 4.3% |
5 | 🇰🇷 South Korea | 3.7% |
6 | 🇩🇪 Germany | 3.7% |
7 | 🇬🇧 United Kingdom | 3.5% |
8 | 🇳🇱 Netherlands | 3.1% |
9 | 🇧🇷 Brazil | 2.7% |
10 | 🇮🇳 India | 2.3% |
Three Asian countries round out the top five list: China (8.6%), Japan (4.3%), and South Korea (3.7%). Together, the top five countries account for around half of all goods exports.
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