The K-Shaped Recovery
Thursday, 21 January 2021
A K-shaped recovery describes the situation where performance for different parts of the economy goes in different directions. In this case, one part goes up while another part goes down, diverging like the arms of the letter K. Currently, the vertical line of the K is the starting point - when the U.S. economy shut down in March 2020 due to COVID. Since then, we’ve seen positive recoveries for the Big 5 stocks, as well as upswings for companies that support the quarantine lifestyle. The service industry mostly made up of small businesses, has been on a downward trajectory since the shutdown, however, with over 6 million newly unemployed or underemployed people who can’t work from home.
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