The K-Shaped Economy Is Testing Stocks Like Walmart and General Mills
The Wall Street Journal·2026-02-20 20:00
The K-shaped economy is creating problems for supposedly safe stocks. Here's how. Observers of the economy increasingly describe it as K-shaped, meaning it shows a growing divide between the wealthy, and everyone else.Now, that's showing up in consumer staples. These are companies that make everyday goods like tissues, soap, and groceries. Stocks in these companies are traditionally seen as more safe and stable.And indeed, so far in 2026, investors are rotating out of high-flying AI names and into companies ...