Bear Market Is When More Women Wear Long Skirts

by golbguru on September 16, 2007

bear market and length of hemline

Presenting the Hemline Theory of stock market performance.

According to Reuters:

Lower hemlines are coming back in fashion for spring and that could spell bad news for the U.S. stock market.

The higher the hemlines, the better the outlook for stocks, according to a popular, but frequently disputed, theory. When hemlines drop, watch out — the Dow Jones Industrial Average is likely to fall, the theory goes.

Bolstering the hemline theory, miniskirts were in vogue and stocks rose in the 1960s.

By the early 1970s, the Arab oil embargo forced Americans to endure gas pump lines, the economy suffered and the popular style was the ankle-length maxiskirt.

I guess someday we can relate stock market performance to the phases of the moon, or to the appearance of some random comet in the sky, or to the height of women’s shoe heels, or perhaps to the number of men getting haircuts in a given month. :)

Won’t blame you if you want to see more miniskirts.

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{ 15 comments… read them below or add one }

1 Patrick 09.16.07 at 8:46 am

So if kilts become popular male attire in the US, will that affect the price of stocks? You see, kilts generally have a fairly high hemline. We could start a new fashion trend here in the States, and our economy would likewise go through the roof! Of course, we wouldn’t get credit, but those who knew the truth would regard us as heroes! ;)

2 golbguru 09.16.07 at 9:55 am

Patrick, look at it another way: if the market tanks horribly this week, what are the chances that some men will be forced to take to kilts? ;)

I would also thrown in a bagpipe there.

3 Ann 09.16.07 at 10:00 am

Interesting article, I allways wear long skirts anyway, lol.

4 AGF 09.17.07 at 12:19 am

Haha, another thing to watch, other than the markets… fashion!

5 Yan 09.17.07 at 12:37 am

Actually shortly after graduation I was hired by an entrepreneur from Indiana to write software to track correlation between moon phases and stock prices. I heard later he is running a successful consulting company. Not sure if the software had anything to do with his success… but the point is, you can sell pretty much anything, just need to find the right kind of customer.

6 golbguru 09.19.07 at 6:54 pm

Yan.. That’s awesome. What were your findings.. did you really find a correlation? :)

7 John Crenshaw 09.20.07 at 1:29 pm

That’s great! What kind of market are we looking at now?

8 Quality Dresses 07.10.12 at 7:58 pm

There is no such thing as a real bear market. Just look at a longer time frame and you will see that the market has been up and up for over 90 years. For more of my market analysis, please visit .

9 Quality Dresses 07.10.12 at 8:00 pm

I don’t believe there will be another leg down but don’t you kind of think that finding a bottom right now would be more prudent than finding a peak of the next bull market?

10 Quality Dresses 07.10.12 at 8:01 pm

How long did the previous Bear Market lasted? How long you think this one will be?

11 Corporate Gifting 11.01.12 at 9:08 pm

What a wonderful way to teach acceptance and tolerance! Such a fantastic father and a true role model in today’s world. I hope he continues to show his son that he is free to be whatever he wants in this world.

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