8. https://profitableinvestingtips.com/profitable-
investing-tips/what-will-the-recovery-be-like
The “best case scenario” will be a “V-
shaped” rapid recovery, which has been
the most common case over the last half
century. The Financial Crisis and Great
Depression are the prime examples of
prolonged, “U-shaped” recoveries. The
economic conditions that end up with a
quick recovery are those in which there
are sufficient cash and credit available to
ramp up production, put businesses back
in operation and get consumers to start
spending again.
9. https://profitableinvestingtips.com/profitable-
investing-tips/what-will-the-recovery-be-like
The case for a fast recovery is that central
banks and governments have been quick
to helicopter in money directly to whole
societies. The case against a quick
recovery is that just how soon the virus
will allow the economy to ramp up again is
not clear. When the initial stimulus checks
run out, will there be more? How
successful will attempts to reopen
businesses in the face of a potential
second or third wave of covid-19
infection?
10. https://profitableinvestingtips.com/profitable-
investing-tips/what-will-the-recovery-be-like
To the extent that states and the
Federal government are willing to
issue debt in order to do things like
rebuild American infrastructure, such
attempts to mobilize the economy
like in WWII could have long term
benefits as well as bring the country
out of a year or two-year long
recession instead of letting it sink
into a decade-long depression!
11. https://profitableinvestingtips.com/profitable-
investing-tips/what-will-the-recovery-be-like
The bottom line from J.P. Morgan is that
long-term damage is likely from this crisis
and that investors should consider this
when choosing investments.
We routinely look at what Warren Buffett
and Berkshire Hathaway are doing as a
guide for long term investing. It is of note
that Buffett is yet to make any large
purchases and is still stockpiling cash!