WPP predicts LUV economic recovery

One of the more astute observations that I very much agree with from Sir Martin Sorrell, chief executive of WPP:

Market commentators have talked of V-, U- and W-shaped recoveries, but Sir Martin said it was more likely that economies would emerge in different ways.

“A ‘LUV’-shaped world economic recovery seems the most acute description in the alphabet soup debate on the shape of the current economic cycle,” Sir Martin said referring to a blog by Stella Dawson, Treasury Correspondent of Thomson Reuters.

In a post titled “It’s the Summer of L-U-V”, she “pointed to an L-shaped recovery for Western Europe, a U-shaped one for North America and a V-shaped one for the BRICs and Next 11″, he said.

The recent optimism over the eocnomy is more than badly placed, as it’s clear that government stimulus has been the driver of economic growth over the summer - and even that was not enough to drag Britain out of recession.

If you know how to do it, now is probably the time to start shorting the stock market.

Not surprising considering that the UK government has completely failed to put in place any real strategy, and will fail it’s three-term run enforcing that Labour are the party of tax and spend - even more ironic considering Gordon Brown’s description as the “Iron Chancellor” - well rusted now indeed.