Hemlines Are Going Down
Kurt Brouwer September 6th, 2007
One piece of street lore on Wall Street has to do with hemlines. The theory is that when hemlines go up, starts follow along. But, when they go down, stocks often do too. Right now, it appears the fashion gurus are lengthening skirts and dresses, so does that mean stocks will fall too?
David Gaffen at MarketBeat Blog reports on the latest technical indicator:
‘…hemlines are dropping again, according to the Heard on the Runway blog, with many skirts and dresses extending to the ankles — or even the knees.
That’s not good for the markets, as Burton Malkiel explained in “A Random Walk Down Wall Street” all those years ago, noting that “there does seem to be a loose tendency for bull markets to be associated with bare knees, and depressed markets to be associated with bear markets for girl watchers.”…’
Source: MarketBeatBlog & Tracy Reese
We have duly noted this trend and added it to the list of technical indicators Fundmasteryblog watches so you do not have to. Let’s see there is the January Effect, the Presidential cycle, tight money timing and now hemline research…
Update:
Here are more posts on the economy and the financial markets from Fundmasteryblog:
Our Profile in the Wall Street Journal
Five Mistakes Investors Make–Over and Over
Subprime and Stocks — What Happened
Stocks–Clinging to a Wall of Worry
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