Friday, September 5th, 2008...5:21 pm

Fashion Indicator Reveals Bear Market

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As Fashion Week kicks off in NYC this week, the eyes of investors will be riveted to the hemlines. Last year’s show with its outrageous and chancy looks gave a clear signal to the end of a bull market. In advance of this year’s show, a quick glimpse at Frillr’s September 2008 Magazine Covers gives us a sense that we will experience a bearish continuation pattern. While some designers are returning to conservative styles and taking small risks on accessories, the majority are keeping their hemlines high.

Even as a groundhog’s shadow prognosticates an extended winter season, a dress’s high hemline has the uncanny ability to forecast (and confirm) an economic downturn. To learn more about this indispensable market sentiment indicator, watch the video clip provided below.

Disclosure: No positions.

More on this topic (What's this?)
Sentiment Swings From Bullish To Bearish (Disciplined Approach to Investing, 7/22/10)
Stock Market Technicals: Bearish Engulfing Pattern Is Cause For Concern (market folly, 6/30/10)
How Close are we to a Secular Bear Market Bottom? (The Contrary Investing Report, 7/14/10)
Read more on Bear market at Wikinvest

Comments

Filed under Tick Talk

  • RogerStreit
    This is a very entertaining clip on popular culture, but in my opinion it has no predictive value when it comes to investing.

    As Burton Malkiel said in A Random Walk Down Wall Street, “Technical strategies are usually amusing, often comforting, but of no real value.”

    BTW, I recently wrote about the danger of over-reacting to all of the negative press about a “Bear Market.” www.keyfeeonly.com/blog

    Roger
  • Hi Roger! Thanks for considering the fashion indicator and sharing your response. Opposing beliefs are an essential ingredient for liquidity in all markets. The buy side relies on the sell side and vice versa. As I am a huge fan of the market, and as imitation is the sincerest form of flattery, the commments exchange at this blog welcomes interest from all sides. It makes for a dynamic experience. As suggested, I visited your blog and found it to be a quality "read" and perfectly authentic. Again, thanks for sharing.
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