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Kerrigan Advisors: Auto Retail Index Up Nearly 12%

December 1, 2016

IRVINE, Calif. — Kerrigan Advisors today announced that The Kerrigan Auto Retail Index was up 11.66% in November, significantly outperforming the broader S&P 500 Index by 240.9%. The firm attributed the rise in its index to the election of Donald Trump as president.

His incoming administration, the firm added, is assumed to be more business friendly. There are also expectations that the Trump administration will slow, or disband, initiatives from the Consumer Financial Protection Bureau, as well as CAFE mileage requirements.

“While the Trump administration is still in formation, we believe stocks are reacting to key themes which portend strong auto sales,” said Erin Kerrigan, managing director of Kerrigan Advisors. “First amongst these is Trump’s stated focus on domestic job creation as well as his advocacy for aggressive spending on infrastructure, including roads, bridges and ports, which could increase employment and add to commercial vehicle demand. In addition, we believe the index is reacting positively to his proposals to stimulate the economy with tax cuts.”

The Kerrigan Auto Retail Index is a monthly index for the auto retail industry, covering seven publicly traded dealer groups with operations focused on the U.S. market.

In November, each of the index's seven component stocks in the index were up, four of them up more than 15%. The Top 4 publicly trade dealership groups that posted the strongest gains were Group 1 Automotive, Sonic Automotive, CarMax and Asbury Automotive Group, in that order.

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