V, U, L, or W - which is it?

[curious]

Do you think the recovery will follow a V, U, L, or W pattern? Of course we are all hoping it isn't an L, where things get bad and stay that way.

I think it will be a W, because we haven't yet felt the impact of state and local government cutbacks due to reduced revenues.

 

[myp]

It really depends on what time frame you are looking at. Personally, in the next 3-8 years, I think it will be an L, but depending on future policies it could change after that. Note that it won't be an exact L, as the current bounce back is sort of an upturn- I think it will be more like a distorted, backwards N.

 

[curious]

Yeah, for instance, my idea of long-term is about ten years. My brother's is about a year. So we had this discussion about longterm prospects and financial planning, only to find out we had been talking about two different things.

 

[David]

Yeah, for instance, my idea of long-term is about ten years. My brother's is about a year. So we had this discussion about longterm prospects and financial planning, only to find out we had been talking about two different things.

That's happened to me. Get into this huge debate only to find out in the heat of battle that you and your opponent aren't even arguing about the same thing!

 

[deanhills]

Do you think the recovery will follow a V, U, L, or W pattern? Of course we are all hoping it isn't an L, where things get bad and stay that way.

I think it will be a W, because we haven't yet felt the impact of state and local government cutbacks due to reduced revenues.

I'm a little preplexed, or maybe just completely uneducated. Can someone explain what the patterns mean?

 

[myp]

I'm a little preplexed, or maybe just completely uneducated. Can someone explain what the patterns mean?

You are just overthinking it- all he mwans by the letters is how the market will go. W would be down, then up, then down, then up again. L would be down and then flatlined. It is just the shape of the letters.

 

[deanhills]

You are just overthinking it- all he mwans by the letters is how the market will go. W would be down, then up, then down, then up again. L would be down and then flatlined. It is just the shape of the letters.

OK. Got it thanks MYP. Actually neat, I like it. So "U" would be more of a normal progression?