In this rerun, Jack searches for new market metaphors and a RBC Economist sizes up U.S. conditions. This episode originally aired on Dec. 5, 2025.<br><br>Learn more about your ad choices. Visit megaphone.fm/adchoices

Revisiting the K-Shaped Economy

Barron's Streetwise

# Full Transcript

**Podcast:** Barron's Streetwise

## Participants

- **Jack Howe** (Barron's)
- **Mike Reed** (Royal Bank of Canada)
- **Mike Reed** (Royal Bank of Canada)

## Transcript

This podcast is brought to you by MassMutual. For 175 years, MassMutual has stood for strength and stability, helping people secure their future and protect the ones they love. Learn more at MassMutual.com. That's MassMutual.com.

Hi, it's Jack Howe. Don't think of this episode on the K-Shaped Economy, originally recorded back in December, as a rerun. Think about it as me recharging my batteries so I can come back and dazzle in our next episode together while you hear about this topic that's still very relevant for the economy and the stock market.

And if you haven't listened to this episode before, it's an opportunity to fill in that hole that you've felt in your life. Probably an S-shaped hole for sad, but not for long. Thanks and see you soon. What we're seeing is a divide in kind of the sentiment, the feeling, the economic prospects. And the divide is between those who are on the upper income end of the spectrum versus those on the lower end of the income spectrum.

Has there always been a divide? Yes. But right now, that wealth effect is just so pronounced. What we're looking at is this K, you know, going from a lowercase K to an uppercase K. Hello and welcome to the Barron's Streetwise podcast. I'm Jack Howe and the voice you just heard is Mike Reed. He's an economist with the Royal Bank of Canada, focused on the U.S.

He's going to talk to us about the K-shaped economy. There's a little K moving toward a big K. Could be a special K. Have some banana slices ready just in case. Listening in is our audio producer, Alexis Moore. Hi, Alexis. Hi, Jack. Could this possibly be? I saw something about the 300th episode. Is this number 300?

This is number 300. On Apple, it will say 301, but we don't count the trailer. That's not a real episode. They're filthy liars is what you're telling me. I feel like we should have some fanfare. Have you prepared? Is there a heavenly choir of angels that's going to come out from the behind the scenes and sing hallelujahs? Not quite that. How about a college football band? It doesn't have to be Division One. I'll take two or three. It's fine. I think we could do that.

Ah, sweet music. Reminds me of the time when I played the sax solo to Wham's Careless Whisper at the middle school band concert. Have I told that story before? Eleven times, right? I tell anyone who'll listen, frankly. I think, Alexis, we have to move beyond alphabetical analogies for financial conditions.

I'm excited to talk about the Ks coming up. The Ks are important right now, but we already have S-shaped growth curves and L-shaped recessions, V and U-shaped recoveries, and there's something with a W shape I can't remember. And now we're differentiating between upper and lower case, and I'm worried that my penmanship is not good enough to handle all this. ...

Revisiting the K-Shaped Economy

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

Revisiting the K-Shaped Economy

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.