Bloomberg L or V Shaped Recovery

And the V becomes L? An interesting analysis by Bloomberg who have analysed 36 recessions since 1965 across the G-7 countries and this suggests a L-shaped recovery is more likely than a V shaped one. Effectively sub-par growth for longer at a time when both fiscal stimulus and Central Bank QE are at high levels.

Bloomberg ominously concludes “With the world facing a second wave of Covid infections this winter, it’s not hard to imagine how the pandemic could inflict significantly more long-term damage than forecasters envisage.