If there's a correlation it could be a good indicator of when to invest. I know how great strip clubs were during the mid to late 90's. The clubs seemed to be on the uptick in 2011 and so was the stock marked. And the last six months both the market and strip clubs have abated.
Of course if there is a correlation then the question is: which one is the leading indicator?
Perhaps a portion of SC customers do spend more when the market is doing very well. But I would guess that portion is somewhat small and their contribution to SC finances (including dancers) is not significant.
The majority of customers in most SCs actually work for a living and have not seen increases in disposable income as the market rises. Their SC spending would be flat. Same - short term - lack of connection to a down market.
The connections I suggest between the economy and Strip Clubs are employment and GDP. In a depressed economy with high unemployment, more women are willing to work in clubs to pay bills and more men have time to visit. Since this combination does not mean a big increase in "lap dance" spending, the competition between dancers for the dollars available does mean a high turnover in newbie dancers and (in areas where puritan enforcement is lax) higher mileage. My guess is that this circumstance would continue for many months into a rising stock market because jobs and discretionary money will lag behind market growth.
I see a GDP (gross domestic product) connection as a negative for Strip Clubs because as GDP rises, employment and free time for spenders goes down. Also GDP growth has always been connected with low skill hiring (not exactly the same thing as unemployment %). When the GDP starts to rise, small companies hire low skill employees to boost production and shipping capabilities. These new hires draw from the same people who would otherwise dance in - or spend part of their unemployment check in - a strip club.
My perspective is that the Dancers in the Clubs get MORE permissive as their financial "fortunes" DECREASE! I don't think many are much into buying Stocks with their cash income.
alucard: "I don't think many are much into buying Stocks with their cash income."
Who can blame them? Many of them got margin calls after txtittyfan told his daughter and all the other strippers he knows to short treasuries just the day before they bottomed in 2009.
Drugs, Guns, and Pussy always make money, market or not.
It is often said that the stock market is a forward looking indicator for the economy as a whole. I don't entirely agree with that. I do agree with the 'wealth effect' that a rising stock market has on public confidence in economic buoyancy. But even more important in giving optimism to people's economic outlooks is a rising real estate market. When rock and roll returns to the real estate market...... that is when you will see happy, confident, spending consumers throwing money around with the proverbial 'gay abandon' once more.
For me, those damned gold stocks are whistling their siren songs at me once again. The collapse in the price of the shares of the big boys of gold mining has me salivating. My long time stink bid for ABX was finally filled at a multi-year low.
I would say so. As Doug; said – a “positive correlation between market performance, discretionary spendingâ€.
When the market is doing well; specifically for an extended period of time; people just feel/think wealthier.
I recall in the early 2000s when a dancer told me how she was making money hand over fist in the late 90s. She said she would routinely run into 50-somethings w/ 1 million dollar plus 401ks and they would often SPEND.
Although the market has been doing relatively well – I think most people are still skittish about the present and what is to come – so I don’t think we are in one of those go go boom times; particularly in terms of spending.
The worse the economy, the worse off for the strip clubs and dancers... the better off for customers because of a few reasons...
Unemployment: Women who had jobs and now don't will look to stripping as an income source, putting more choice of women in the clubs.
Greater Need to Earn $: Women who see other sources of money go down will be more desperate for funds and will offer more services.
Less Cost: When times are tough and people cut back, dancers may start offering stuff for less money.
@jack: I agree with all that, but I also think that as the economy improves, strippers can make more money, so that will bring in other, often higher quality girls, into the mix that won't consider it the potential to earn was lower.
I also think it the rise is mileage in the last few years is not only due to the GFC, but also do to the accelerated whorification of the younger generation due in no small part to the influence of hip-hop (and, no, I am not complaining! :-) )
My limited experience. When the economy was down I would get unsolicited OTC/take-out offers almost every visit. From rookies - no less. Now the economy is movin up - it happens lot less.
Quality of dancers is unchanged - but in my mind dancers are gettin sexier every year - more juice, more throbbing. Why? cuz I'm gettin older !
Understand, this is not about what extras you can get in a strip club. It is purely when the talent improves in a strip club.
Is when the market and economy are robuts? Or is it when they are strugggling.
Seems the last six months th market has done exceptionally well as opposed to "abating". Anecdotal evidence also suggests things are getting better for the gals locally.
Absolutely a positive correlation between market performance, discretionary spending, and how well strip clubs do.