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Michael Kantro observes that both corporate and consumer economic strength is largely determined by the biggest companies and the wealthiest, oldest consumers.
This concentration, according to Kantro, keeps the U.S. economy strong on aggregate even as many individuals and smaller entities struggle, leading to a pronounced k-shaped outcome.
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Kantro previously reported that consumer perceptions of low mortgage rates have reached near the 3rd percentile since 1978. Earlier this year, he also documented that S&P 500 price-to-earnings ratios have dropped over 3 points since Q4/25. Both trends reflect recent shifts seen in corporate and consumer economic conditions.