2020 was a dramatic year for us as we have seen the huge dropped of the stock market in March and some ( New Economy / Growth stocks ) have recovered nicely or hitting new high while some ( Old Economy / Value stocks ) are still struggling to recoup the losses. We are experiencing the so-called “ K-shaped “ of economic recovery.
K-Shaped Recovery < source : Investopedia.com>
What Is a K-Shaped Recovery?
A K-shaped recovery occurs when, following a recession, different parts of the economy recover at different rates, times, or magnitudes. This is in contrast to an even, uniform recovery across sectors, industries, or groups of people. A K-shaped recovery leads to changes in the structure of the economy or the broader society as economic outcomes and relations are fundamentally changed before and after the recession. This type of recovery is called K-shaped because the path of different parts of the economy when charted together may diverge, resembling the two arms of the Roman letter "K."...