US presidential election in November. Who will bet, who will rule? It is not clear whether the American people will maintain the power of the government. There is discussion and discussion. There is a hard fight in the field. There is a crisis in the powerful nation. The slow siren of financial crisis is playing in the country. In the USA, the recession has already arrived.
Lipstick Sales Signal US Economic Crisis
Because the lipstick business has grown in the market. Investors know and be cautious. And women have already started investing in cosmetics. Capital has been secured before the recession. So what is the relationship between lipstick and the American market? Why is lipstick now popular in the US market?
Warren Buffett is the owner of Workshire Hathaway. He is known as one of the richest people in the world. He has influence in the field of capital investment. If he invests money in any company, the technique of getting money out of it is well known.
From which it can be seen what is the state of the market. In such a situation, Warren has invested in a cosmetics company. It is said that lipstick sales increase during recession. Warren has taken full advantage of the situation. He has invested in brands like cosmetics with a profit of two cents.
The Lipstick Index
Many years ago, the chairman of ST Lauder, Leonard Lauder, started the lipstick index. Leonard Lauder is a big American capitalist. During the recession of the 2000s, lipstick sales were growing rapidly. The production of cosmetic products was increasing during the biggest recession in the United States between 1929 and 1933. The same situation occurred in 2008.
There is a secret behind this. Because when the economic situation is good, women buy more and more. And when the situation is bad, women buy more and more lipstick. A vivid example of this is the terrorist attack in 2011. In the midst of a deep economic crisis, the sale of lipstick doubled, which helped the country a lot. Now the lipstick sales there are indicative of the country’s looming economic crisis.