Lipstick Effect

Everyone knows that the market for equity markets, bond markets, money markets, etc. defines the ups and downs.

Nowhere else is a simple arrow up or down, light green or red icon that has as much immediate impact and presence in the human mind. It is as if the whole world, the senses and sees the little red arrow buttons as a sign of impending doom, or who have made the Apocalypse ("end of the world as we know it").

Because "the roller coaster market" leaves so many people in a state of confusion, and fears of a constructed double-dip recession, I found it appropriate to focus on the positive and to lend some insight.

The economic theory of special interest is the "lipstick effect."

"Lipstick Effect" is pretty easy to explain and may be disclosed, in three phases:

When there is first an economic downturn, or the mere suspicion of being "in the red", people reduce their spending on luxury goods, high end (goods that are not necessary for everyday life).

2. Because women are not buying handbags and Gucci sunglasses sometimes expensive, difficult, women now have the extra money will obviously need to happen.

3rd Instead of saving all that extra money as an assurance of a possible recession, women rationalize spending money in excess and more comfortable buying the lipstick they buy normally, and therefore, the "lipstick effect."

Now if this sounds like nonsense to you, consider that after 9 / 11, one day we can all say it was a time of uncertainty ultimately Estee Lauder has taken a big jump in sales of red lips .

Across America, have doubled.

Even if the economy is not the job of explaining the more money side of human behavior, is a general lack of understanding of life "because" it happens.

At this point, psychology shine.

I believe that because of this instability in the markets, people are becoming more and more nervous, so much so that they begin to fall apart emotionally.

To compensate for this inner turmoil, women feel the need to splurge on lipstick, probably the most important type of makeup and significant, as a way to keep your ego out nice and helpful.

I am a sincere believer in using a little makeup to enhance the beauty of a woman already has.

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