While economists report that the U.S. economy is “bumping along the bottom,” the Hedges & Company Aftermarket Stock Index continues its climb that started in March 2009. That’s right, March 2009, three months before the “Great Recession” was officially declared over. The stock index is comprised of over 20 publicly-traded automotive aftermarket SEMA-member/Auto Care Association-member companies and has steadily grown over 72%, March 2009 to November 2010. The chart below compares the stock index with the S&P 500. The S&P 500 does appear to bumping along the bottom with a hint of a slow recovery. In contrast, the Hedges & Company Aftermarket Stock Index bottomed out in 4Q2008 – 1Q2009 but has been in a sustainable recovery ever since.
If you would have invested $1,000 in the S&P 500 on January 1, 2008 you would be down to just over $800 today. Investing in the companies represented in Hedges & Company index would have turned your $1,000 into nearly $1,500 on November 1, 2010.
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 mentioned.