Haters gonna hate, and consumers gonna consume. But what those consumers consume can change leading up to an economic recession, and that’s what the Leading Lipstick indicator is all about.
As it turns out, when consumers begin to lose confidence in the economy, they stop buying expensive luxury items—like shoes and yachts—and instead buy less-expensive luxury items…like lipstick.
It’s true, and while we can’t put an exact number to the indicator (there’s no differential equation we can apply to lipstick sales and consumer confidence), evidence suggests that lipstick sales often increase quite a bit when financial times are tough. That’s because lipstick is considered a “cheap luxury.” It’s something we can spring for even when we’re tightening the belt.
Financial analysts often look to the sale of lipstick and other cheap luxury items, like manicures and boxer briefs, to gauge how consumers are generally feeling about the economy.
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Finance: What is the Super Bowl Indicato...1 Views
Finance Allah shmoop what is the Super Bowl indicator And
sadly Nostradamus has been dead for five hundred years So
when your tea leaves have dried up and your crystal
ball is in the shop what do you use to
determine whether the stock market is about to go up
or down Well according to the famous Leonard Koppett sports
writer and major superstition aficionado You Khun tell into a
reasonable degree of certainty which way the market will bounce
based on the results of the Super Bowl No this
Super Bowl Okay so he might have been half kidding
But when Kopit proposed his future telling system in nineteen
seventy eight it made a lot of sense to a
lot of people mostly the people who rely on astrology
charge for their investing decisions But still you know the
concept resonated back when the term was coined The market
went up ninety percent of the time that the NFC
team won the big game and reliably went down whenever
the A F C team emerged victorious Anyway assuming that
Tom Landry then coach of the Dallas Cowboys wasn't massively
investing in plastics and pharmaceuticals each time his boys brought
home the trophy Well there was probably nothing to this
theory but it sure seemed convincing at the time Well
as time would tell the theory was proven to be
about as flimsy as the Tampa Bay Buccaneers Front seven
Well between two thousand seven two thousand seventeen the Superbowl
indicator it was exactly fifty percent accurate In other words
you might as well trust this guy to predict market 00:01:30.29 --> [endTime] turns
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