Happy New Year for the automotive aftermarket industry! Following up on our popular blog post “What If You Invested $1,000 in Automotive Aftermarket Companies” the Hedges & Company Automotive Aftermarket Index finished 2010 with a 48% gain. In a dramatic comparison, the S&P 500 only increased 11% in 2010.
Not only did the Hedges & Company Automotive Aftermarket Index outperform the S&P, but aside from a slight blip in June and July, the rise was steady and constant. Compared to the 2008 baseline (gray line in chart), 2010 was clearly a breakout year. The index bounced around the baseline for 2008 and 2009, but by late summer 2010, the index was 34% ahead of the baseline and didn’t look back.
The S&P by comparison (green line in chart) vacillated throughout 2010 and ended December with a last minute flourish to finish 11% higher than January. The S&P was at 1132.99 January 4, 2010 and closed at 1257.64 on December 31, 2010.
If you would have invested $1,000 in the automotive aftermarket on January 1, 2008 your investment would be worth $1,601.43. On the other hand, $1,000 invested in the S&P 500 would now be worth $900.30 (excluding dividends).
Clearly the automotive aftermarket industry is strong, healthy and poised to have a great 2011.
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.
We are sorry that this post wasn't useful for you!
Let us improve this post!
Tell us how we can improve this post?