Archive for July, 2008

Skirt Length Theory

Long dress

…skirt lengths are a predictor of the stock market direction. According to the theory, if skirts are short, it means the markets are going up. And if skirt are long, it means the markets are heading down.

The idea behind this theory is that shorter skirts tend to appear in times when general consumer confidence and excitement is high, meaning the markets are bullish. In contrast, the theory says long skirts are worn more in times of fear and general gloom, indicating that things are bearish.

Investopedia

Not sure how reliable this indicator is, but I noticed back in February that catalogs started showing full length dresses. Maybe I noticed it because I pay attention to the market, but it really is interesting.

The same companies haven’t carried a maxi-dress or a maxi-skirt for 2-3 year. Last year I wanted to buy a long summer dress and I couldn’t find one anywhere (except of the evening variety)! This summer daytime long dresses are everywhere. Now, there are still mid- and short length ones, but longer lengths are definitely creeping in. Another sign that consumers aren’t feeling very cheery. Though I must say cleavage is in, that’s gotta be another fashion-related stock market sign but what it means – I don’t know.

Long dressLong dress

Virtual Money

Photo credit: re_birf

We’re moving away from cash, it’s mostly virtual money now. If you were working at a bank – and had access to computers – I wonder how hard would it be to add a zero to select few bank accounts? Nobody needs to lose the money, just a few accounts would gain some. What’s the harm? Well, if you were to do that, you’d just dilute everyone else’s money a little bit, inflate. It would be sort of a localized Fed injection of money.

I thought about it after watching “America: Freedom to Fascism”. Even IRS (!) of all things has trillions of missing money every single year, so they just write it off as “undocumented expenses”.

Insider Buying

It’s worth mentioning again: Insider Buying Score.

As you can see, insiders have been buying since summer of 2007, more and more as the markets have gone down.

I don’t think this chart is a good short-term tool, but in mid- to long-term it does give a pretty good picture of what’s going on.

There are still companies out there worth buying, even today.

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