After the economy has taken a nosedive, it’s time to recover and get back up on that horse. Economic recoveries come in all shapes and sizes, just like Americans. Really though, there exist actual “shapes” that economic recoveries take on graphs that can tell us things, like voodoo witchcraft (or just “economics”).
Things like GDP and employment can be graphed. During a recovery, these factors have taken a drop, and we’d like to see them on the up-and-up. Sometimes, they make a W-shape, dropping, then going up a little, dropping again, and going back up finally. Kind of like when you’re watching a fight in an action movie: the hero takes a big hit (first line of the W), making the audience gasp. Then he gets back up (second line of the W, going up), and you can feel the hope rising. He takes another hit and falls back down (third line of the W, going down). Everyone wonders: is this the end of him? Then he rises triumphantly, and everyone remembers: this is Hollywood, of course (last line in W, going up).
A W-shaped recovery can be seen after The Great Recession. A W-shaped recession is a rough one with ups and downs, i.e. not an immediate or even quick recovery. People who think it’s a simple V-shaped recession, so they jump back in to buy stocks in the market too soon...get burned a second time when the market dips down again. Confidence is all over the place, up and down. No doubt about it that W-shaped recessions mean a rough ride.
Some economists call W-shaped recessions “double-dip” recessions. And we all know how big of a no-no double-dipping is. Even for the economy.
Related or Semi-related Video
Finance: What are Triple Bottom and Trip...2 Views
Finance allah shmoop what are triple bottom and triple tops
All right well this is a triple top It wants
to break out The stock was trading down here around
five bucks a share in and glam o it went
up And yes blam o is the name of the
company's new anti constipation drug a huge hit So it
went up up up to hear it Fifteen bucks tripled
in value in just a few months but then sober
reality began to hit the investing community There simply wasn't
enough constipation to go around So the stock began to
flag and traded down teo here this level at twelve
bucks But then glam o again released big news a
partnership with manish of its grandma tsa and the american
cheese manufacturing association So the stock raced again to fifteen
But no there just wasn't enough enthusiasm from buyers pay
more than fifteen bucks a share for it So you
know that's all despite this newly created a kind of
market So the stock sank back to twelve only to
then have investment interest from procter and gamble owners of
sharman who bought five percent of the company at thirteen
fifty ish year and left a lot of investors thinking
surveyed by the whole company complete with its product line
of anti constipation drinks Waymo glam Oh thankyou memo But
alas the investment community would not pay up past fifteen
to share and the stock flagged again sinking back to
twelve having created a triple top and needing something to
make things really start you know going So yeah that's
a triple top What about a triple bottom Well a
triple bottom and basically just the same thing in reverse
like this keeps hitting a low point looking like it's
going tio bottom out further But then it recovers on
the subject of bottoming out well glam o is now
available in new chewable gummy form Yeah glam o so
you never have to worry when your bottoms out