Leading Lipstick Indicator
An indicator based on the theory that a consumer turns to less-expensive indulgences, such as lipstick, when she (or he) feels less than confident about the future. Therefore, lipstick sales tend to increase during times of economic uncertainty or a recession.
Investopedia Commentary
This term was coined by Leonard Lauder (chairman of Estee Lauder), who consistently found that during tough economic times, his lipstick sales went up. Believe it or not, the indicator has been quite a reliable signal of consumer attitudes over the years. For example, in the months following the Sept 11 terrorist attacks, lipstick sales doubled.
Related Links
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The Media As A Lagging Indicator
Trading Psychology: Consensus Indicators - Part 1
Understanding the Consumer Confidence Index
Consumer Confidence: A Killer Statistic
See also: Aspirin Count Theory, Bo Derek, Boston Snow Indicator, Jennifer Lopez, Leading Indicator, Presidential Election Cycle, Recession, Skirt Length Theory