The Covid-19 pandemic has likely sent the United States into a recession. America’s economy contracted in the first quarter and the pain is expected to be even worse for the second quarter.
Now economists and market experts are debating how strong the eventual rebound will be. The answer may have something to do with basketball star Michael Jordan.
It’s probably too optimistic to expect a classic V-shaped recovery, with its quick bottom and steep comeback. The same goes for a U-shaped rebound, where it takes longer to hit bottom but the recovery is still sharp.
Instead, the recovery could be shaped more like a Nike swoosh– popularized during Jordan’s heyday with the Chicago Bulls and his line of Nike clothing, starting with Air Jordan athletic shoes in 1984. The bottoming out process may take a little longer to take hold, but once the rebound starts it would be steady and gradual.
“I think we’re going to see a Nike swoosh shape as we work our way out of this crisis,” said Steve Rick, chief economist at CUNA Mutual Group. “We had a hard, fast drop in March, and I think how we bounce back will be a long, steady inching up through the end of 2020.”