What can skirt lengths and high heels tell us about the global economy?
Since the financial crisis, investors have been looking for new indicators not currently provided by economic, public or private data-gathering agencies who publish economic reports. Investors often ask themselves the usual question: is it the right time to buy shares? Invest in certain stocks or real estate? Or is it a suitable time to merge with another company?
So why depend on regular common indicators – why not look at non-conventional methods? The most consistent and best performing indicators are almost always behaviorally-based.
Dr. John Casti, Cofounder of the X-Center in Vienna and author of ‘Mood Matters’, states; ‘The rise and fall of great civilizations are biased by the attitudes a society holds to the future’.
Would it occur to you that the difference in the length of women’s hemlines can serve as a societal indicator of the health of the economic situation? It looks like this is a valid indicator and was the creative force behind the ‘Hemline Index’, created by the economist, George Taylor,in 1926.
The theory suggests that hemlines on women’s dresses rise along with stock prices. In buoyant economies, we see rising hemlines (such as the miniskirts as seen in the 1960s), or in poor economic times, as shown by the 1929 Wall Street Crash, hems can drop almost overnight
Short skirts signify for less hard times while longer choices reflect more conservative times, reflecting that the social mo uncertain and reflecting the mass psychology. And according to The Daily Mail newspaper, maxi length skirts are a sure sign of difficult times; the fashion is currently for hemlines as low as those worn during 1929’s Great Depression.
In general, when the social mood is positive and optimistic, hemlines tend to be shorter. And, that the reverse is true when things are dour or the social mood is uncertain.
Now let’s move to women’s shoes!
As awkward as it may sound, the height of women’s high heels reflects the economic atmosphere. Researchers noted how the higher the heel, the better the economic situation. The average heel height of shoes purchased and the strength of the economy are related. It was noticed that women tend to buy flat shoes during difficult economic times.
Discover what men wear when economic situations are good or when they are bad: