Opinion: How to invest in the K-shaped economy
The US economy has rarely felt so divided. On one track, the ‘Magnificent Seven’ companies – Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla – continue to power the S&P 500 to record highs. On the other, Main Street is showing signs of strain, as consumer earnings and spending patterns tell a story of fatigue.
Recent corporate results from major retailers and restaurants reveal a clear theme: consumers are trading down. Even McDonald’s, Chipotle and Starbucks have admitted that lower-income and younger customers are pulling back spending. The top 10% of households now account for roughly half of all consumer spending, underscoring how prosperity in the US has become increasingly top-heavy. This is the K-shaped economy, a market bifurcated between corporate giants building the future and everyday Americans tightening their belts. For a more complete summary of the story, please see the below link:
Published on: Nov 21, 2025 02:43 PM