V-Shaped Recovery

AAA

DEFINITION of 'V-Shaped Recovery'

A type of economic recession and recovery that resembles a "V" shape in charting. Specifically, a V-shaped recovery represents the shape of the chart of certain economic measures, such as employment, GDP and industrial output. A V-shaped recovery involves a sharp decline in these metrics followed by a sharp rise back to its previous peak.

INVESTOPEDIA EXPLAINS 'V-Shaped Recovery'

There are countless other shapes a recession and recovery chart could take, including L-shaped, W-shaped, U-shaped and J-shaped. Each shape represents the general shape of the chart of economic metrics that gauge the health of the economy.

RELATED TERMS
  1. Global Recession

    An extended period of economic decline around the world. The ...
  2. Jobless Recovery

    An economic recovery, following a recession, where the economy ...
  3. U-Shaped Recovery

    A type of economic recession and recovery that resembles a "U" ...
  4. L-Shaped Recovery

    A type of economic recession and recovery that resembles an "L" ...
  5. W-Shaped Recovery

    An economic cycle of recession and recovery that resembles a ...
  6. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced ...
Related Articles
  1. Active Trading Fundamentals

    Recession: What Does It Mean To Investors?

    Understanding the business cycle and your own investment style can help you cope with an economic decline.
  2. Investing

    What is a V-shaped recovery and how is it different from other recoveries?

    A V-shaped recovery depicts an economic situation where a severe downturn in the markets is met with an equally strong upturn in the markets. The V refers to the general shape a chart forms based ...
  3. Economics

    4 Tips For Buying Stocks In A Recession

    Bear markets can terrify even seasoned investors. Learn how to invest safely.
  4. Budgeting

    Five Strategies For Surviving Tough Times

    Cruise through a slowing economy - even when others are going off the rails.
  5. Options & Futures

    Market Bottom: Are We There Yet?

    No one rings a bell when the bear market's over, but that doesn't mean there's no way to predict a bottom.
  6. Economics

    What is Demand?

    Demand is the economic term for the cumulative wants and desires of consumers as they relate to a particular good or service. Generally speaking, if all other factors remain constant, as demand ...
  7. Trading Strategies

    What other sectors besides utilities are known as defensive?

    See why certain sectors, other than utilities, are considered defensive and therefore more resistant to the downturns of business cycles.
  8. Home & Auto

    How did the ABX index behave during the 2008 subprime mortgage crisis?

    Read about the disastrous performance of the various ABX indexes in the subprime mortgage crisis of 2008 during the middle of the Great Recession.
  9. Economics

    What is Supply & Demand?

    The law of supply and demand is one of the most basic principles in economics. In simplest terms, the law of supply and demand states that when an item is scarce, but many people want it, the ...
  10. Bonds & Fixed Income

    End of Fed's Bond-Buying Program: 7 Things To Know

    This article helps investors understand the economic and financial effects that result when a central bank (like the Fed) ends its bond purchase program.

You May Also Like

Hot Definitions
  1. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  2. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  3. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  4. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  5. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
  6. Bank Guarantee

    A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor ...
Trading Center