We’ve been wondering how long it would take for someone to link the surprising results of the Westminster Kennel Club Dog Show to the stock markets. MainStreet.com—the Parade Magazine of money sites—takes a stab but just comes up with an article about health insurance for dogs. Next!
Fortunately MarketBeat’s David Gaffen has discovered something far more interesting: The Westminster Kennel Club Dog Show Indicator.
Last night, at the 132nd annual dog show, Uno, a 15-inch beagle, took home the blue ribbon, the first time that breed has won the competition.
The beagle belongs to the hound group, which has only mustered three previous winners since the show’s inception. In two of three years, the Dow performed quite well, with one negative performance.
The average return in those years is 7.4%, as the average gained 20.3% in 1983, the last time a hound was victorious (an Afghan hound). In 1964, when the whippet claimed the top prize, the Dow gained 14.6%. Only in 1957, when another Afghan took home the ribbon, was the Dow weak, losing 12.8%.
For some reason, however, we like the Sports Illustrated indicator from yesterday far better.
Release the Hounds! [Market Beat]