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Prieur du Plessis

Prieur du Plessis

With 25 years' experience in investment research and portfolio management, Dr Prieur du Plessis is one of the most experienced and well-known investment professionals in…

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What is the Hemline Theory Telling Us About Stock Markets?

Just for a bit of fun ...

The length of women's skirts tells you the way the market is going to go, according to the so-called "hemline theory".

In the '20s and '60s hemlines were at a high and so was the stock market. And in the '30s and '40s the stock market was so low that women were almost tripping on their skirts. The hemline theory was also on the ball in 1987. Miniskirts were all the rage, and the stock market was at a matching high. But then the market quickly crashed in October, right when designers such as Bill Blass decided that miniskirts looked ridiculous. Hemlines dropped and so did the market. Coincidence?

Right now the trend is supershort skirts and stiletto heels. Could this be telling us something about the market ahead?

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