A tricky indicator of problems: what the lipstick index screams about

A tricky indicator of problems: what the lipstick index screams about Common sense dictates that in a grim economic environment, consumers are cutting back on non-essential purchases but will continue to splurge on small luxuries. And this phenomenon has a special name  lipstick index. Analysts are confident that the worse things are in the economy, the more actively this indicator grows.When lipstick sales go up, people wont buy dresses,  Leonard Lauder, heir to the family business and head of Este Lauder, told The Wall Street Journal in 2001. It was he who first drew attention to the growth in sales volumes during the economic recession in the United States. So the state of the economy may be inversely proportional to the purchase of luxury cosmetics.The head of L'Oral, Nicolas Hieronymus, recalled this indicator at a briefing on the company's financial results in October this year. He noted that sales of L'Oral goods grew by 9.1% in the third quarter alone, despite serious problems with sales in Asia due to quarantine in China.Coty, the maker of CoverGirl cosmetics, also reported that organic beauty sales rose 9% over the same period. Cosmetics sales have also been a rare positive for retailers like Target, especially as the upcoming Christmas holidays are sure to continue this trend.Psychologists are also sure that in times of crisis, beauty care is perceived as an affordable luxury and effectively compensates for both political and financial negatives. So those who are pleased not only with high-quality cosmetics but also with exchange profits should take a closer look at the shares of perfume giants.Profits to yall!#ForexChief #LOral #forexnews #NicolasHieronymus #stocks #market #lipstickIndex #Coty #CoverGirl #WallStreetJournal