One unexpected correlation between investing and another element is the correlation between stock market returns and the length of women’s skirts. This correlation, known as the “hemline indicator,” suggests that there is a relationship between the two seemingly unrelated factors.
The hemline indicator is a theory that suggests the length of women’s skirts rises and falls with the performance of the stock market. According to this theory, when the economy is booming and the stock market is doing well, hemlines tend to be shorter. On the other hand, during economic downturns and bear markets, hemlines tend to be longer.
The origin of this theory can be traced back to the 1920s when the fashion trend shifted towards shorter skirts, known as flapper dresses, coinciding with the economic boom of the “Roaring Twenties.” Since then, researchers and analysts have periodically revisited the hemline indicator and found some degree of correlation between skirt lengths and stock market performance.
It’s important to note that the hemline indicator is considered more of a fun anecdotal theory rather than a reliable investment strategy. The correlation between skirt lengths and stock market returns is not supported by rigorous empirical evidence or a clear causal relationship. It is likely a coincidental correlation that gained attention due to its quirky nature.
While the hemline indicator may not be a useful tool for making investment decisions, it highlights the sometimes unexpected and unexplainable correlations that can emerge between seemingly unrelated elements.