NEW YORK -- Short skirts are in the news again. Hemlines are rising and, if you believe in statistical correlation, whenever hemlines go up, so do profits and business activity. No one has a logical explanation for this phenomenon, but it has held true for the past 30 years.

Perhaps optimism is the common denominator. The bottom line is that when short skirts are selling like hot cakes, as they are today, don't sell short.

Are we still in a stagnant recession? Or, is the country heading for a business boom? Looking for a crystal ball to guide your investments? Possibly the short skirt theory is as good as any.