Archive for July, 2015

Fashion statement: Mixed markets ahead!

Monday, July 27th, 2015

emma-summerton-collection[1]There have been a few theories that expound a correlation between fashion and the stock market. For example, there’s a theory that the stock market rises along with hemlines, and while that may be true, I believe there are more telling features, such as:

Primary Factor: Color

Secondary Factor: Print

During up markets, colors tend to be bright, and prints tend to be diverse (think floral, small patterns, etc).

During down markets, colors tend to be muted (black/grey/white/brown), and prints are either non-existent or are blocked (in larger, geometric patterns).

What the fall 2015 couture collection is showing: Clashing prints in heavy tweeds that aren’t congruent with either a male or female form. Perhaps it’s a reflection of the rising LGBT culture.

This is a new wrinkle in the fabric of stock trading and as such, I’m not sure what it means. Perhaps the market doesn’t know, either.

Final Analysis: We’re in for a completely new paradigm. One way to be prepared for a bumpy ride is to book profits in “old” companies and sit in cash on the sidelines and wait for the newbies to appear.