TRADEKING STAFF MEMBERX This user works for TradeKing as a staff member, either full-time or as a paid consultant. Everything this user posts is subject to internal approval by TradeKing’s compliance officer before it goes live to the public – which results occasionally in some response delay. Because TradeKing offers no investment advice, staff members are not allowed to make specific recommendations about any security or trading strategy, on their blogs or anywhere else. If you have an account-related question, we’re happy to help – but not all of us are FINRA-registered representatives. Email service@tradeking.com or call us at 877.495.5464 for fastest assistance. 
|
The TradeKing Blog
Last Published: 3/9/2008 3:10:22 AM
The urban hip-hop crowd creates a new "hemline theory"
Posted by:
Dominic Basulto on
August 23, 2006 at
6:32AM EST
 As Barry Ritholtz of The Big Picture blog reminded us back in April, the "hemline theory" has been trotted out by financial analysts for the past 75 years or so as an indicator of where the economy is headed. The fact that the "hemline theory" has been around this long means that it's been pretty
accurate: "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."
Well, now comes news that urban hip-hop mogul Jay-Z (you might know him as the guy who hangs with the beautiful Beyonce) is launching a new men's line
(Rocawear Custom Fit) this fall, complete with form-fitting jackets,
custom slim fit trousers that are narrower in the legs and knees, logos
that are smaller and more discreet, and jeans that don't sag so low that
your underwear is exposed. As Jay-Z explains,
"Once I hit 30, I can't wear jeans showing my underpants anymore."
Could this be the start of a new urban hiphop "hemline theory"? Baggy
trousers & exposed underwear = bullish expectations; slim fit
trousers & no exposed underwear = bearish expectations. Anyway, it
may sound trivial, but the Wall Street Journal devoted a full five
columns of ink to the story, complete with an extensive graphic
representation of "The Elements of Rocawear's Custom Fit."
The above content is provided for educational and informational purposes only, does not constitute a recommendation to enter in any of the securities transactions or to engage in any of the investment strategies presented in such content, and does not represent the opinions of TradeKing or its employees. TradeKing provides self-directed investors with discount brokerage services, and does not make recommendations or offer investment advice. You alone are responsible for evaluating the merits and risks associated with the use of our systems, services or products. All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Your use of the TradeKing Community is conditioned to your acceptance of all TradeKing Disclosures and of the TradeKing Community Terms of Service. 2006 TradeKing.
|
Join the TradeKing Community