Quote:
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Originally Posted by sumitas
7/14/09
Date......Sold..Amount...Average.. N/Sold...Median
7/14/08 142 13,311,000 93,739 112 75,000
7/16/07
Date Sold Amount Average N/Sold Median
7/16/07 178 15,826,000 88,910 89 75,000
from the bloodhorse...
John Fort, the president of Peachtree Racing Stable....
“The market seems really down,” Fort said. “Just sitting around watching horses sell, I see a lot of $20,000, $30,000, $40,000 horses. I’ve always felt like if you could afford to own a racehorse, you should be immune to little glitches in the economy. People who are sort of on the edge of an economy that might be fluctuating up or down shouldn’t be putting their money in racehorses.”
I guess he wants to see higher prices for the horses.
There were 25 bids below $20k, a couple of which were accepted. In other words of the 112 RNAs, about 87 had bids over $20k but failed to meet their reserve.
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John's a buyer so he'd rather see a more stable, realistic market. However, I think he touched upon an interesting point.
So, the average was up 5%. Means nothing. Easily distorted. The median was the same and the buybacks were up about 33%!!! That says something about the state of the market. But John's point is interesting in that all these horses selling for $20k and $40k -- there isn't a market for many of these horses. There should be, but there isn't.
I look at the 2yo in training sales and I wonder -- who is making money selling $20k to $50k 2yo's? Answer -- nobody.
Eric