Markets

Welcome to the K-Shaped Recovery

Welcome to the K-Shaped Recovery

(New York)

The wild market over the last four months has caused a lot of elation and anxiety among investors. It has also caused a rethink of what kind of recovery we may be experiencing. Almost everyone thought we would have a V- or U-shaped recovery, but the way things are shaking out, it looks like we may have a “k-shaped” recovery. What this means is that almost all companies took a big dive at the start of the pandemic. However, after that point the fortunes of certain sectors have diverged markedly, forming a “k” shape to the market recovery. IT, consumer discretionary, and communication services have been the big winners, while energy, financials, utilities, and real estate have suffered.


FINSUM: So the interesting question here is the degree to which the market recovery might end up mirroring the economy’s recovery. So far the patterns make sense.

  • stocks
  • recovery
  • covid

    The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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