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Short Shorts and Stocks: What's the Connection?
Can fashion trends tell you anything about where stocks are heading?

By Gary Grimes
Tue, 20 May 2008 17:15:00 ET
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Perusing the mainstream media headlines yesterday, I came upon a story that caught my attention. The headline:

Designer says fashion will "prevail" in the face of economic downturn.
 
No argument here, but my question is, What type of fashion will prevail?
 

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It got me thinking about a few other things I’ve recently seen:
  • My wife’s favorite fashion catalog (for men and women) featuring just as many one-piece bathing suits as bikinis.
  • The recent re-emergence of longer shorts available for women.
  • More earth tones used for clothing.
  • Less make up on women.
  • Fewer printed patterns available on your favorite store’s shelves (or in catalogs).

It seems that mainstream fashion is becoming a bit more conservative.

The whole green movement in the clothing industry alone indicates the public’s desire for more conservative fashion.

Now, in today’s world of everyday styles – where there’s more choices than ever for every age group, niche and gender – can you really see fashion as a market indicator? The answer is yes – it's as much a supporting indicator as ever.
 
Are you going to become a billionaire for noticing that your wife’s shorts are longer than they used to be? Probably not. But it's more than an interesting thought to ponder. 

I encourage you to take note of the fashion around you. Everything – including fashion – that is driven by mass social mood is measurable. At Elliott Wave International, we measure social mood with the financial markets.

But, if you’re in the world of fashion, it might not be a bad idea to take a look at the major stock indexes in your country. You’ll be surprised how the long-term trends in the markets fluctuate with trends in the fashion industry.


Cycles, Elliott Waves and Social Mood – Even the Presidency

From pop culture and fashion to stock markets and politics, the Wave Principle provides a valuable perspective. In his latest Elliott Wave Theorist, Bob Prechter delivers long-term forecasts for stocks, metals, even the presidency. Learn More.


 

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