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How Obama Moves Markets (But Not the Obama You Think)

Barack Obama may be under fire for failing to jump-start the economy, but a feature in the Harvard Business Review points out that Michelle Obama is doing her part to rejuvenate the fashion industry – at least the part of the fashion industry she likes. Recent research by David Yermack indicates that the First Lady has the power to move fashion markets just by wearing an article of clothing. Yermack says that Obama has generated $2.7 billion in “cumulative abnormal returns” for the brands she wore. All in all, a Michelle Obama fashion portfolio would have been a very good bet for investors:?”For 18 major appearances, the abnormal returns were 2.3%. Compare that to a 0.5% average gain when a company announces a new celebrity endorser. For one European tour, an index made up of stocks associated with her wardrobe gained 16.3%, trouncing the S+P 500’s 6.1% gain in the same period.” [%comments]