Quotes from this video

In recent decades a handful of financial analysts have observed a correlation between the stock market and fashion. In the ate 1960s financial researcher, Ralph Rotnem’s hemline indicator, correlated the length of womens’ dresses to the rise and fall of the stock market. This became the first roughly quantified measure of the link between popular culture and financial trends.

All of the popular groundbreaking horror movies were produced in bear markets. Dracula, Frankenstein, King Kong, The Mummy, Dr Jekyll and Mr Hyde… All of those were produced from 1931 to 1933… two short years during which time the Dow Jones Industrial Average was plummeting. You didn’t have a situation like that again for decades, until the late 1960s until the early 1980s. Then you had Halloween, Night of the Living Dead and The Texas Chainsaw Massacre and all of these, again, ground breaking horror movies that were popular. And you don’t see that sort of thing in bull markets. There’s always a mix of course. There are movies of all types produced all the time. The question is the frequency, the popularity, the intensity. When you see horror movies from bull markets you find out generally they’re derivative, or they’re hokey or they’re humorous, but it’s the ones produced in bear markets that shock people.

When we look at three hundred years of stock market history we see that the economy follows the primary register of social mood, the stock market. When the trend in social moves goes up the people are adventurous. When the trend reverses they become cautious and produce less.

Related posts