The K-Shaped Economy: Where Are Markets Headed in 2026?
January 28, 2026
Welcome to the K-shaped economy, defined by a bifurcation in economic sentiment and outcomes. The letter “K” captures the divergence: the upward-sloping arm represents higher-income households, supported by rising income and wealth, while the downward-sloping arm reflects low- and middle-income households facing stagnant wages, rising living costs and heavy debt burdens.