Have you ever considered the price of aluminum cans? Sam maintains when the price goes up, the economy is on the rise as well.
Sam tracks how the economy is doing based on the price of aluminum cans. I wondered if there are other indicators that we don’t usually consider that could help track the economy. These tidbits were reported by the Business Insider.
First Date Indicator
The theory: More people seek out others for first dates when the economy turns down. People get lonely.The proof: Match.com said the fourth quarter of 2008 was its busiest period in seven years. The second busiest weekend was when the Dow dropped to five-year lows in November 2008. Traffic also spiked after the 2011 attacks.
Alligator Population Index
The theory: Fewer Americans are spending money on discretionary items, therefore sales of high-end hand bags made of alligator will fall.
The proof: In 2009 alligator farms in Louisiana faced bankruptcy as the market all but dried up. Alligator skins were not being purchased by luxury designers.
Super Bowl Indicator
The theory: If a team from the old National Football League (NFC Division) wins the Super Bowl, the S&P 500 will gain that year. However if a team from the old American Football League (AFC Division) wins, the market will decline.
The proof: It’s true! Analysts tell us that this rule has been accurate around 80 percent of the time since 1970.
Men’s Underwear Index
The theory: Men will forgo purchasing new underwear during hard times.
The proof: Yes! Even Alan Greenspan is a believer. Research firm Mintel estimated men’s underwear sales fell 2.3% in 2009, the first time since 2003.
The Garbage IndicatorThe theory: GDP should correlate to the amount of garbage produced. When you create things you also have to throw other goods out.
The proof: Of all categories that ship by rail, none correlate tighter to GDP than waste. Economist Michael McDonough put the correlation as high as 82%.
What indicators can you spot in your own industry? Oil prices? Metals? Clothing trends? One of the greatest causes of stress is the feeling that you don’t know what’s going to happen tomorrow and believing you have no control over your future. That’s a scarcity mentality that makes you believe you’re a victim.
Live your life as if you own it with confidence based on research, planning and optimism.