Archives for: June 2007, 01
Car Colors Reflect Economic Mood
June 1st, 2007a/k/a the Dow bubble is about to burst and we are all going to drive dull finished earth tone cars
Here is an interesting article which tracks the most popular car colors as they relate to the U.S. economy. Here are some excerpts:
According to the records of DuPont Automotive, which began tracking the popularity of automobile colors in 1953, black is mainly a positive-mood color. Black, white, and red tend to expand in popularity during bull markets, collectively peaking near mid-point. Color consultant Leatrice Eiseman says that an owner of black is “empowered, not easily manipulated, loves elegance, appreciates classics”—traits characteristic of rising mood trends.
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But red, which Eiseman says is “sexy, speedy, high-energy, and dynamic,” made its mark through its other shades such as purple-maroon, orchid, and coral-pink. The surge of coral-pink into the top three shades sold in 1957 marked the high point for the three “mainstream” positive mood hues at a market share of approximately 50%. We hypothesize that the subsequent divergence of the three from the stock market’s trend signaled that the postwar stock market rally was entering its final stages on an inflation-adjusted basis.
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In 1966 the negative mood colors began an 8-year assault on American automobiles that would eventually gain them a 66% market share. By no mere coincidence, that same year a bear market began a 9-year attack on stock prices (17 years on an inflation-adjusted basis); the United States stepped up its attack on Vietnam; China imploded in the Cultural Revolution; and social life in the United States entered a period of volatility that would eventually lead to the resignation of the President in 1974.
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Red in all its shades (except maroon, which we classify as a brown) disappeared completely as a color option for intermediate/full-sized cars in 1974. The only other year on record that lighter shades of red disappeared completely for the category was 1982, the year of the inflation-adjusted bottom in stocks.
You can read the entire article along with other articles which tie the economy to societal trends at:
http://www.sociotimes.com/archives/2007/04/dazzling_finish.aspx
Mike