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Hemline Theory

The theory that holds that stock prices tend to move in the same direction as the length of hemlines on women’s dresses. In this sense, rising (shortening) hemlines indicates a bullish market, whilst dropping (lengthening) hemlines suggest a bearish market. Generally, the hemline theory is often used as in indicator of economic condition, particularly in the United States. This assumed finding was presented by analyst/ economist George Taylor in 1926.


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