Saturday, August 30, 2008

Using Hemlines To Forecast Stock Market?

Have you heard of the Hemline Theory?

It says stock prices tend to move in the same direction as the length of hemlines on dresses. Thus, rising hemlines are a bullish sign and falling hemlines are a bearish sign.

In US, Fall fashions are showing much longer hemlines this year.

If you need more evidence that US is in an economic slowdown, search no more.

One more economic indicator - there's the lipstick barometer! When the economy goes down, everyone in fashion knows that lipstick sales go up. Sales of lipstick during the first 6 months of 2008 were up 60% over the same period in 2007. The theory is women buy more lipstick in brighter colours to cheer themselves up!

(Adapted from Market Watch article Aug 11, 2008)

Hmm...more analysis to support my Stock Market Forecast for Next 8 Years! lol

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