What do men’s underwear and lipstick have to do with the economy? Uh, not that! They’re economic indices that you have probably never heard of. We have six more of them in this post, because we had so much fun learning about the indices in yesterday’s blog.
1. The Lipstick Index: This is a term coined by Leonard Lauder, the former CEO of Estée Lauder, to describe the idea that during times of economic recession, women tend to buy more lipstick as a way to boost their mood and feel better about themselves.
2. The Men’s Underwear Index: This is a tongue-in-cheek economic indicator that suggests that during times of economic downturn, men tend to buy fewer new underwear and instead make do with what they have.
3. The Hemline Index: This is a theory that suggests that the length of women’s skirts is a barometer of the stock market: when hemlines are short, the stock market is up, and when hemlines are long, the market is down.
4. The KOF Index of Globalization: This is an index developed by the KOF Swiss Economic Institute that measures the degree of economic, social, and political globalization in different countries, based on a range of factors such as trade, investment, and information flows.
5. The Genuine Progress Indicator (GPI): This is an alternative to Gross Domestic Product (GDP) that takes into account a wider range of factors, such as environmental sustainability, income distribution, and social welfare, to provide a more comprehensive measure of well-being and progress.
6. The HPI-Heavy Index: This is an index that tracks the stock prices of companies that produce heavy machinery and equipment, such as bulldozers and cranes, and is used as an indicator of construction activity and infrastructure spending.
Overall, these unusual economic indices can be a fun and interesting way to think about the economy and its various drivers, but they should not be taken too seriously. The best economic index is the one you create for yourself! Get started today on your real estate training journey with Private Coaching or coach Brian Gormley’s real estate masterclass!