Hemline Theory

Whimsical idea that stock prices move in the same general direction as the hemlines of women's dresses. Short skirts in the 1920s and 1960s were considered bullish signs that stock prices would rise, whereas longer dresses in the 1930s and 1940s were considered bearish (falling) indicators. Despite its sometimes uncanny way of being prophetic, the hemline theory has remained more in the area of wishful thinking than serious market analysis.

Whimsical idea that stock prices move in the same general direction as the hemlines of women's dresses. Short skirts in the 1920s and 1960s were considered bullish signs that stock prices would rise, whereas longer dresses in the 1930s and 1940s were considered bearish (falling) indicators.