Five graphs that show how uncertain markets are about the coronavirus recovery

Abstract

First paragraph: Financial markets can tell us a lot about the economic recovery ahead, based on their direction of travel and how confident investors feel about the future. This is important as we emerge from the COVID-19 pandemic. There is much debate about whether the economic recovery will be a V-shape, indicating a short-lived economic downturn with a quick return to previous levels of output. Or if the recovery will take longer, following a U-shape. Or it could be more like an L-shape, with no near-term recovery and ultimately taking many years or even decades.

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http://hdl.handle.net/1893/31545