The use of letters to describe the trajectory of the recovery was very much in vogue earlier in 2020. Optimists talked of a V-shaped recovery while prophets of doom spoke of an L. Those in the W camp saw a more volatile path out of the crisis with some periods of optimism countered by setbacks as the spread of the virus picked up and restrictions were re-imposed.
We preferred to rely on the letter K to capture the two separate and very different paths of the economy during the crisis. The upward line symbolising the parts of the economy benefitting from the pandemic – like many pharmaceutical and healthcare companies or the online consumer sector. The downward leg represented much broader group of companies suffering from the widespread lockdowns. Of these, energy companies, banks and utilities were among the worst hit.