hemline theory

Hemline theory

A theory that stock prices move in the same direction as the hemlines of women's dresses. For example, short skirts (1920s and 1960s) are symbolic of bullish markets and long skirts (1930s and 1940s) are symbolic of bearish markets.

Hemline Theory

A theory of investing stating that market trends follow the length of women's skirts. That is, when women wear short skirts, there is or will be a bull market; when they wear long skirts, there is or will be a bear market.

hemline theory

The theory that holds that 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.
References in periodicals archive ?
Gooden, a writer and novelist, collects rules and principles related to politics, economics, the arts, sciences, physical survival, the internet, life and work, and laws of the land, such as the domino effect, Warren Buffett's rules, Rational Expectations Theory, hemline theory, the Bechdel test, rules of journalism, rules of grammar and usage, writers' rules, the laws of sci-fi writers, planetary naming rules, the laws of thermodynamics, the Van Halen Principle, Murphy's Law, Jim Crow laws, three strikes law, and the Miranda rule.
Today, most experts regard hemline theory as fanciful, but a number of social theorists agree that trends in fashion, movies, or music do reflect public sentiment, which can influence stock market direction.
While the hemline theory has never been considered for serious market analysis, it does seem to have an uncanny way of being prophetic.
Jeremy Batstone of NatWest Stockbrokers says: "The hemline theory shouldn't be the central plank of your investment strategy but it's worth taking into account.
The usefulness of the hemline theory seems to be declining because fashion designers are now sending out mixed messages.