Green shots indicate positive data during an economic downturn. When the economy goes down all the charts show decline, which is usually depicted in red. On a chart containing a lot of red bars every green bar sticks out. That green bar depicts positive, growth data. Such a bar is called green shot.
Investors look for green shots during time of downturn, as they can early indicate changes in main trends. If such a trend change is indicated, it is the best moment to buy shares, as they are very cheap and probably will grow. However, the green shots don't always mean change of trend. After the crisis in 2009 some green shots showed on charts and the were mistakenly interpreted as end of downturn. In fact the situation extended several years and some trends didn't change even 4-5 years later.
- Seyfang, G. (2009). Green shoots of sustainability. Research paper, University of East Anglia, Norwich, UK.
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