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Is Rising Dow A Good Omen For Horse Sales?
In the US, the Dow Jones industrial average closed at 10,015.86 on October 14 (Wednesday) "marking the 1st time the figure had touched 10,000 since October of last year, when the stock market was on its way down" noted bloodhorse.com. The statistic "has enjoyed an amazing rebound of 53% since March, when it dropped to its lowest point in more than a decade". Is the improvement in the stock market a good omen for the thoroughbred auction business, which remains mired in a slump? "Maybe," suggests The Blood-Horse magazine which tracks stock market trends, compares them to the performance of the select sessions of the Keeneland September auction & publishes the results each year prior to the start of the sale. In a 16-year period (1994-2009) the average price during the select session has followed the trend of the stock market 13 times. In 2009, so far, the Dow Jones average "hasn't risen past 2008's high, but if the stock market can keep rallying into 2010, recent history shows the average, at least for the Keeneland September's select sessions, will follow the same trend more likely than not, giving beleaguered thoroughbred sellers a glimmer of hope".