As the states begin the task of reopening, the question now is how long will it take the economy to recover? There are 3 types of recoveries that could happen.
- V-shaped recovery: an economic period in which the economy experiences a sharp decline. However, it is also a brief period of decline. There is a clear bottom (called a trough by economists) which does not last long. Then there is a strong recovery.
- U-shaped recovery: when the decline is more gradual, i.e., less severe. The recovery that follows starts off moderately and then picks up speed. The recovery could last 12-24 months.
- L-shaped recovery: a steep economic decline followed by a long period with no growth. When an economy is in an L-shaped recovery, getting back to where it was before the decline will take years.
No one can answer this question with one hundred percent certainty. However, most top financial services firms are calling for a V-shaped recovery. However, no one knows for sure how quickly Americans will get back to “normal” life. We will have to wait and see as the situation unfolds. Call/text me at 931-237-1417 to discuss this further.