Friday, November 24, 2006

Skirt lengths and Stock prices

A few weeks ago I mentioned this in class and I got many weird looks (even more than normal). I'll admit that the idea that hemlines and fashion could be linked to stock prices does seem quite ridiculous, but there may be some ties. The theory is that as hemlines rise (be it for less risk aversion or some other reason) so too do stock prices. Thus the best time to buy stocks is when hemlines are long. has a longer version of the video documentary available for free that has other similar fun examples. For instance, according to the video, most famous horror films come from times when bear markets dominate. Is it

The piece is definitely thought-provoking even though I am not totally convinced. For instance I would love to know if the apparent link is merely a spurious correlation or if there is some mass socio psychology (a behavioral finance) story at play, or if there is there a direct link (not quite cause and effect) such as each factor being driven by some other socio-economic variable that shows itself through culture).

But definitely fun and interesting! And besides...uh, no I better not. ;)

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