The hemline theory

So the market is down more than 200 points, economists are suddenly talking recession, and the new spring fashions are sporting longer hemlines. In other words, it's the perfect time to dredge out that old indicator of stock performance: how short or long skirts happen to be. Of course the connection is silly. But the connection has a track record - sort of. In the roaring '20s, flappers' dresses got high, and the market rallied. Then came the 1929 market crash and hemlines fell. In the 1960s, miniskirts were in vogue and stocks rose; by the 1970s, the ankle-length maxi-skirt was all the rage. These past few fashion seasons, short skirts have been in and stocks have rallied. "There is a seemingly positive correlation between what happens [in fashion] that ultimately affects us all as market participants," says Charles Payne, the editor of Wall Street Strategies. But designer Tracy Reese tells Reuters, "I'm not thinking, 'Things are tough out there. I'm taking the lengths down,'" she said. "Longer looks fresher."