Usually means: Skirt lengths predict economic trends.
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We found 6 dictionaries that define the word hemline theory:

General (2 matching dictionaries)
  1. hemline theory: Wiktionary
  2. hemline theory: Dictionary.com

Business (3 matching dictionaries)
  1. MoneyGlossary.com (No longer online)
  2. Hemline theory: Bloomberg Financial Glossary
  3. Hemline Theory: Financial dictionary

Slang (1 matching dictionary)
  1. hemline theory: Urban Dictionary

Definitions from Wiktionary (hemline theory)

noun:  The informal theory that stock market prices move in the same direction as the hemline of women's skirts, short skirts being considered bullish and long skirts bearish.

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