Finance & Fury Podcast

Welcome to Finance and Fury, the Say What Wednesday edition. This week’s question from Jacob. “Hi Louis – I have a question about the forecasts of our recovery. I read that the RBA is expecting the economy to have a v shaped recovery and it seems that the share market is also going back up. My question is do you think the recovery will be v shaped? Would be great to get your thoughts on this.” Thanks Jacob – that is a great question – today run through what these recovery patterns are, look at the metrics behind them and see if these stack up against what a v shaped recovery pattern looks like Before we get into the shapes – I have little faith in the RBA models – purely based on their track records and the modelling used What Is V-Shaped Recovery? Description of a pattern of recovery – Lots of different letters to describe the pattern of recovery – V, L, U, W - the shapes take their names from the approximate shape economic data make in graphs during recessions – The type of recovery pattern is represented