Rose-Colored Recession

DEFINITION of 'Rose-Colored Recession'

The unexpected optimism market observers sometimes experience during a recession. A rose-colored recession reflects the sometimes unwarranted positivity of the general public following news or data released during a recession; it is still considered bad news, but is better than expected.

BREAKING DOWN 'Rose-Colored Recession'

The term rose-colored recession was coined during the financial crisis of 2008-2009 in reference to optimism shown by market observers and government officials following bad economic data, such as corporate earnings announcements and unemployment numbers, that were "not as bad as feared" or "bad, but not that bad". Quite often these events led to bear market rallies and predictions of an end to the recession.

RELATED TERMS
  1. Recession Resistant

    An entity which is not greatly affected by a recession. Recession ...
  2. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  3. Recession Proof

    A term used to describe an asset, company, industry or other ...
  4. Economic Recovery

    A period of increasing business activity signaling the end of ...
  5. Jobless Recovery

    An economic recovery, following a recession, where the economy ...
  6. The Great Recession

    The steep decline in economic activity during the late 2000s, ...
Related Articles
  1. Personal Finance

    Top 4 Things To Know About The Last Double-Dip Recession

    The financial media and investors are haunted with the prospect of a double-dip recession. We look to the past to see if a double-dip recession is in our future.
  2. Economics

    What The Double-Dip Recession Means For Countries Around The World

    How will the possibility of a double-dip recession affect nations around the world?
  3. Insurance

    A Review Of Past Recessions

    Here we look at the biggest economic declines in the U.S. since the Great Depression.
  4. Economics

    Industries That Thrive On Recession

    Find out where to turn when looking to invest in a tumultuous market.
  5. Personal Finance

    Will Your Net Worth Be Affected By A Recession?

    Here's a look at how a potential recession could impact your net worth in a negative way.
  6. Entrepreneurship

    The Impact Of Recession On Businesses

    Find out how this economic cycle affects both small and big business.
  7. Home & Auto

    5 Long-Term Consequences Of The Recession

    Apart from the headlines about jobs, this recession is doing damage in other areas that goes unnoticed.
  8. Bonds & Fixed Income

    Tips For Recession-Proofing Your Portfolio

    Find out what to do when the sun sets on a burgeoning market.
  9. Economics

    6 Factors That Point to Global Recession in 2016

    We may be on the verge of another global recession.
  10. Forex

    PIMCO Report: 3 Thoughts on Recession

    Find out what PIMCO's March 2016 Macro Perspectives report says about the likelihood of recession in 2016 and the years thereafter.
RELATED FAQS
  1. Why does unemployment tend to rise during a recession?

    Learn what a recession is, some attributes of an economy in a recession, and why the unemployment rate tends to have a domino ... Read Answer >>
  2. Is cyclical unemployment always due to recessions?

    Learn about the mechanisms that cause cyclical unemployment and find out about the role recessions and downturns play in ... Read Answer >>
  3. What is the correlation between term structure of interest rates and recessions?

    Discover the importance of the term structure of interest rates, also known as the yield curve, and its predictive power ... Read Answer >>
  4. Why is the crowding out effect less likely to occur during a deep recession?

    Learn more about the crowding-out effect of government fiscal policy on private investment markets and whether it changes ... Read Answer >>
  5. Are economic recessions inevitable?

    Find out why future economic recessions are likely but not inevitable. See how logical arguments can be used to help understand ... Read Answer >>
  6. When during the economic cycle should I invest in the automotive sector?

    Discover the best time to invest in the automotive sector when the economy is in a recession and interest rates have already ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center