The “stripper index” is an unconventional economic indicator that suggests a potential economic downturn based on the earnings of exotic dancers.
The underlying logic is that visiting strip clubs is a discretionary expense. When the economy is healthy and people have more disposable income, they are more likely to spend money on non-essential entertainment like strip clubs, leading to higher earnings for the dancers. Conversely, if the economy begins to falter and people become more concerned about their finances, they will likely cut back on such discretionary spending, resulting in lower income for strippers.
Therefore, a noticeable and sustained decrease in the earnings of exotic dancers is interpreted by some as an early signal that the broader economy may be heading towards a recession, as it indicates a reduction in overall discretionary spending.
What is it saying right now?
Even though economists are still behind the curve, the index says recession or atleast a sustained economic contraction, affecting the stock market naturally, is about to hit the US.
What does it mean for India?
Weakened dollar means a strong rupee. Investors will be adding more of emerging markets including India to both their portfolios and business expansion plans. The scenario for India is not gloom and doom after all.
How accurate is the stripper index for the US economy and other large economies?
Very very accurate. You can find all the case studies online. Started as a meme, but turns out it does work.
What is my take?
While the US will continue to be in a secular growth, the growth rates will be significantly higher for India and other emerging markets.
What do you people think?