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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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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.
According to the " hemline theory" of fashion, this may be construed as a signal that B- town girls are in the mood to give Pranab Mukherjee and his budget a thumbs- up.
While the hemline theory has never been considered for serious market analysis, it does seem to have an uncanny way of being prophetic.
The usefulness of the hemline theory seems to be declining because fashion designers are now sending out mixed messages.