V-Shaped Recovery


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.

BREAKING DOWN '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.

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  1. 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 ... Read Full Answer >>
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  3. How does the risk of investing in the industrial sector compare to the broader market?

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  4. How can I hedge my portfolio to protect from a decline in the retail sector?

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