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Can we expect a V shape bounce in economies?

R

realdeals

Active Member
As the UK moves closer and closer to lockdown, Spain and Italy close their doors and stock markets look set for another volatile week, should we be expecting a V shaped economic recovery?

The idea behind a V shaped recovery is simple, pent-up demand in troubled times will suddenly hit the market when conditions improve and economies will recover. While there is some scepticism behind the idea of a relatively quick recovery once the coronavirus is “under control” there are still reasons to be hopeful.
 
F

FWL

Member
We can certainly hope for V shaped economic recovery but whether we get one is a whole different matter. At the bottom of the economic cycle, whenever that may be, manufacturing will be shattered, consumer spending on the floor, casting doubt on a rebound economic recovery.
 
R

realdeals

Active Member
This is a crisis which will live long into the memory! The more I read the more I realise that the chances of a V bounce in the economy are slim, very slim.
 
J

Joshua Baines

New Member
Hi Realdeals,
Personally I think the economy is going to be hit very hard by this corona virus. I think that property prices will go down very low as people will want to sell up and go into renting which i think will make rents soar to new levels due to popular demand.
 
P

PostBrexitInvestor

Member
As somebody else mentioned, I am not sure about the expected switch from property ownership to rental. Quite simply, there are not enough private rental properties available. He is an idea, if the UK government can build a hospital in two days, surely they can build some social housing?
 
NewOrleansHomeBuyer

NewOrleansHomeBuyer

New Member
I hope it will be a V shaped but don't think that is likely. This isn't going to just get back to normal overnight and there will be a lot of things holding consumer spending back. I think a U shape is the best case scenario
 
R

realdeals

Active Member
I totally agree @NewOrleansHomeBuyer this is going to take a long long time to work through the system. That is before we even consider the damage to sentiment and confidence in the current capitalist system.
 
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