Also see our update on this topic, posted November 2, 2010
If you invested $1,000 in the S&P 500 and $1,000 in a representative group of publicly-traded automotive aftermarket companies on January 1, 2008, how would your investment look today? You may be surprised. Starting with a baseline of January 2008, Hedges & Company tracked over 20 publicly-traded automotive aftermarket companies and compared that to the S&P 500. As the chart reveals, the downturn in the economy devastated the S&P 500 but the stock value of aftermarket companies did very well starting in the summer of 2009.
To put this in perspective this chart includes the major market crashes from September and October 2008 as the financial crisis started unfolding.
A $1,000 investment in the S&P 500 on January 1, 2008 would have yielded a -23% return leaving just $765.28 by September 1, 2010. However, a $1,000 on January 1, 2008 in the publicly-traded companies that make up the Hedges & Company Aftermarket Index would have yielded a 35% return resulting in $1,346.29. Both examples exclude stock dividends or commissions. Stock symbols for some of the aftermarket companies included in the H&C Aftermarket Index include: AAP, ABG, ATAC, AZO, CRV, DORM, GNAU, GPC, HWK, LAD, MNRO, MYE, ORLY, PBY, PRTS, SAH, SMP, and UNS.
Financial disclaimer: Hedges & Company is not attempting to give any financial advice; investments are subject to risk; carefully review and consider a prospectus before making any investment decisions. Full disclosure: Hedges & Company principals do not directly own stock in any of the companies listed.