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V-Shaped Recovery

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V-Shaped Recovery
A situation in which an economy enters a steep recession but quickly and strongly recovers. A V-shaped recovery may be bullish and lead to GDP growth and job creation, but it may be risky because of the possibility that another steep decline could occur. See also: W-type bottom, V-Bottom, W-shaped recovery.


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The V-shaped recovery would please most investors; the economy sees a sharp decline, hits a pronounced bottom, quickly turns upward and cancels out much or all of the losses that investors experienced on the way down.
Indeed, many economists, real estate experts and market analysts, appear to be ditching the idea of the V-shaped recovery this time around, and are instead lining up behind the L-shaped, U-shaped or J-shaped recovery models.
 
 
 
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