2007 Fall Fashion Trends

Caution, trends ahead

My veteran readers know that from time to time I rely on the wit and wisdom of Peter Lynch when analyzing investments. There are two reasons for this.

Lynch, for 13 years the head of Fidelity's Magellan Fund, wrote (with John Rothchild ) "One Up on Wall Street" (1989 ) and "Beating the Street" (1993 ), among other things. He excels at explaining the market in a simple manner. Simplicity is good. Horse sense and logic are simple things. That's one reason I like him. The other is that his insights are still valid today.

Yes, his examples are from the distant past of the 1950s, '60s and '70s, but I don't think that matters. In the world of stocks the players and the backdrops change but the scenarios remain pretty much the same.

What goes up

Take what we could call the meteor companies. These are small companies that found themselves a profitable niche, below the radar of the big companies or other players, that suddenly shoot up in meteoric fashion, presenting phenomenal growth and profitability.

That's when they go public. They sustain their trajectory for a few years, reporting warp-speed growth that results in astronomic pricing ratios.

Their extraordinary performance is like blood in the water. Speculators and momentum investors start to circle, further accelerating the companies' meteoric rise.

But the moment the pace of growth slows, or heaven forfend stops, gravity kicks in and they burn up as they fall through the atmosphere.

Bowling a strike

Lynch describes just such a case from the 1950s, when America was swept with a craze for bowling. A small company that specialized in establishing and operating bowling establishments began to grow like a weed, and its stock shot skyward. Then the predictable scenario kicked in.

Why? Well, first of all the entry barrier to the bowling business is not high. All you need is a little money for rent and equipment, and Bob's your uncle. Competitors began springing up like mushrooms after a rain. There were no technological or legal barriers, no need for special locations, to keep others out and protect the business: The entry barrier was lower than the Dead Sea.

Also, in contrast to manufacturing companies there is no size advantage to having a chain of bowling alleys. Each new venue means buying and installing equipment, paying rent and salaries. Revenues increase but not profit rates, since your fixed costs rise in lockstep with your income. In a business with economies of scale a 20% rise in revenues will result in a greater increase in profits.

Silver, Gold and Glitz Fashion Trends for Fall - thoughtlist.net ...

Sequin Tunic Dresses

A sequin is a spangle and it catches the light easily. It also catches the onlooker’s immediate interest, as light is reflected with movement of the sequin disc. Spangles, sequins, pailettes, call them what you will, sequins are big news this autumn. One of the best party looks this autumn 2007 is the all over sequin A-line tunic dress which is a fashion trend that has been growing.

For value for money sequin styles check out the high street for the latest party hot trends. Shops are already gearing up for party wear purchasers.

Detail of French Connection Campaign ’07 – Funky petal sequin dress 05160.

Monsoon gunmetal and copper sequin tunic dress, another dress that looks like molten liquidOne of the most attractive type of this dress, is this abstract bead and sequin patterned tunic dress from French Connection available Autumn 2007. The futuristic space age effect is one of metallic liquid wet paint glimmering with glitzy glamour. It’s such an easy comfortable fashion trend to wear and the shortness can easily be offset by extra special tights. Lurex hosiery would add an extra party touch, as would coloured tights.

Above left – Sequin and bead detail of the dress right.

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