The Scariest Recovery Shape I've Heard Yet

Nobody wants to hear about U-shaped recoveries because that bottom takes too long to form.  The L-shaped recovery is equally unwanted as it implies only the drop, but no recovery, just a bump along the bottom.  And if you fear double dip, then the last thing you’ll want to hear about is the dreaded W-shaped recovery.

So let me throw this one at you…how about the Teepee-Shaped Recovery?  Yes.  As in upside-down V, implying that we are currently in the middle, at the peak.

Michael Pento, a fave new read of mine on the Green Faucet network, posits that we will be seeing exactly that, clearly a minority viewpoint right now….

The shape of this economic recovery will not be in a “V”, as many pundits have promulgated, but instead may be the inversion of that letter…which will unfortunately look much more like a tepee. The upcoming downfall will surprise most investors who have been tricked into believing that a government can print and spend their way into prosperity.

Pento doesn’t come off as bearish for the sake of bearishness and as regular readers know, I am in the camp that the end of both monetary and fiscal stimulus will not be nearly as smooth as, say, Sully landing a goose-choked 747 on the Hudson River.

Read the rest for Pento’s rationale.  Important stuff.


The Teepee Shaped Recovery (Green Faucet)

image from Natalie Dee