Anything Sir Martin Sorrell says tends to make headlines. Today, Sorrell said that he thought the recession would take an “LUV” form. This was a phrase coined by Thomson Reuters correspondent Stella Dawson. But what does “LUV” mean?
Dawson suggested there would be an L-shaped recovery for some countries, a U-shaped for others and a few would achieve a V-shaped recovery. Sorrell added that he too thought Western Europe would have an L-shaped recovery; North America a U-shaped recovery; and a V-shaped one for the BRIC and Next 11 developing nations.
L-shaped means: after a long drop, there is a very slow, protracted recovery that takes a while to really take hold.
U-shaped means: a feeble recovery that takes longer than a V-shaped one, but rises quicker than a L-shaped one.
V-shaped means: a short recession with a quick rebound up again.
Want a nice pictorial version of this explanation? Visit here. In other news, Sorrell also said that those who have been commenting on the economy and being cheered by any less disasterous results have adopted a “flat is up” mentality.
“There are those who think that flat is the new up,” he said. “I don’t want to get into that mentality where you accept that declines in negatives is good. We don’t accept that. I’m surprised at people who see sequential declines in negatives [of revenue loss] and say the downturn is over.”
