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Watch That Bikini Wax Indicator

madhedgefundtrader's picture




 

There is no end to which I am willing to go to understand the future direction of the world economy. So when I learned that the price of Brazilian bikini waxes was going through the roof, I had to sit up and take note. Last month, the price of the popular beauty treatment soared by 16.6% to 35 Reals, about $22.

This is no joke. The Brazilian government includes the removal of body hair in the most strategic of places in a basket of consumer services that it uses in calculating the country’s inflation rate, now estimated at 6.5%. An economist in Rio de Janeiro assured me that this has nothing to do with the opposite sex. It is one of the few measures they track which can’t be clouded through the surreptitious altering of its quantity or quality. You either get it, or you don’t.

The big picture here is that inflation is worsening, not only in Brazil, but other emerging markets, like China, India, and Vietnam. This is why the yields on one year Brazilian debt are at sky high double digits, a hedge fund favorite. It is also why the People’s Bank of China’s efforts to stanch inflation through higher interest rates and tightened bank reserve requirements are likely to get worse before are gets better.

What can I say? An economic indicator in the hand is worth two in the bush? And I won’t even get into the implications of “Stealth” inflation.

To see the data, charts, and graphs that support this research piece, as well as more iconoclastic and out-of-consensus analysis, please visit me at www.madhedgefundtrader.com . There, you will find the conventional wisdom mercilessly flailed and tortured daily, and my last two years of research reports available for free. You can also listen to me on Hedge Fund Radio by clicking on “This Week on Hedge Fund Radio” in the upper right corner of my home page.

 

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Wed, 06/08/2011 - 12:49 | 1351371 Katharotes
Katharotes's picture

I think that women's grooming habits and requirements are

important indicators of an economy's health. Think of pampered

"ladies who lunch" and women in prison camps.

Basic survival is important, critical, but sooner or later we need

more than raw basics to function mentally.

Tue, 06/07/2011 - 15:12 | 1347836 Caveman93
Caveman93's picture

-Papers & scissors = $10.00

-Persian Cold Wax 11oz jar (6 sessions of wax) = $14.95

-Talcum powder = $3.95

-Unemployed with 3 hours in the evening to wax your wife .... priceless.

Tue, 06/07/2011 - 12:29 | 1347198 kato
kato's picture

this guy is a Victor Niederhoffer parrot, copying Victor paying attention to guys known only as 'Hobo' to tell Victor whether or not the general public was smoking cigarettes to the filter (times are tough) or leaving lots of tobacco (fat). THIS GUY ON ZH IS AN UNORIGINAL FAKE AND A PHONY COPYCAT LOSER.

Tue, 06/07/2011 - 11:58 | 1347084 falak pema
falak pema's picture

He should have got "hard clear eye" to post her male dude pics on his post to spice up the interest amongst the women folk on ZH. The men only come here to have a laugh...its a good place to relax...after an intelligent WB7 picture show. Bikini wax and ass grease are all you need with a MHFT rant.

Tue, 06/07/2011 - 12:32 | 1347208 anony
anony's picture

Not just yuks, but a dozen or so dudes with outasight Avatars, including bouncing ta-tas, bodacious, HD, and perfect.

All is Ripeness.

Tue, 06/07/2011 - 11:55 | 1347068 Clowns on Acid
Clowns on Acid's picture

Price of Bikini wax = $22, pic of Weiner with waxed chest = priceless.

Since most of the $22 is "labor" then on can imagine that price elasticity of getting waxed would allow price to go down, or a do-it-yourself kit will be developed.....although I would not be a buyer...ahem. 

 

Tue, 06/07/2011 - 12:37 | 1347214 anony
anony's picture

You are forgetting the Price-fixing that savvy folks, like attorneys, large accounting firms, corporations, and lesser mortals engage in.

I can picture a dozen bikini waxers getting together for a meet to fix the price at whatever they think the market will bear, and broken limbs for those who lower their prices.

Tue, 06/07/2011 - 11:52 | 1347056 Byronio
Byronio's picture

Had to rate this a 5 as this was the most important post I've read on ZH, this is what makes or breaks an economy, a CULTURE. Sadly this is an article that needed PHOTOS, most of the other posts on ZH are well illustrated.

 

Tue, 06/07/2011 - 11:41 | 1346993 DogSlime
DogSlime's picture

Can't take Bikini Wax as a serious indicator of the economic situation, sorry.

Tue, 06/07/2011 - 12:38 | 1347218 anony
anony's picture

What do you think about the IBWR approach to putting your money to work?

Tue, 06/07/2011 - 11:25 | 1346934 scratch_and_sniff
scratch_and_sniff's picture

The waxing thing is an unreliable indicator, since there would be lots of folks willing to do that stuff for free...now where did put that sellotape?

Tue, 06/07/2011 - 11:21 | 1346915 InconvenientCou...
InconvenientCounterParty's picture

no pictures.... fail

Tue, 06/07/2011 - 11:17 | 1346895 oddjob
oddjob's picture

Bring back your blank posts, they showed more effort.

Tue, 06/07/2011 - 11:14 | 1346884 espirit
espirit's picture

Probably the one most important inflation indicators we can trust.  We must get this under control as the consequences are unimaginable!

Tue, 06/07/2011 - 11:55 | 1347069 Logans_Run
Logans_Run's picture

Yeah I do usually get inflated when I see the after effects of one of the vital services. Smooooooth baby!

Tue, 06/07/2011 - 11:12 | 1346876 apberusdisvet
apberusdisvet's picture

There's a bush joke in here somewhere.

Tue, 06/07/2011 - 12:26 | 1347172 Manthong
Manthong's picture

It's Bush's fault.

It is an outrage that a service as essential as this should become less affordable.

How's a man to keep a smooth appearance on Ipanema Bbeach at this price?

Tue, 06/07/2011 - 11:22 | 1346921 I am more equal...
I am more equal than others's picture

A hairless cat gives me Cat Scratch Fever. 

Tue, 06/07/2011 - 11:13 | 1346866 hugovanderbubble
hugovanderbubble's picture

Im short Brazil

with EWZ

 

Short Russia, Brazil,

Neutral China

Long India

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