At the moment, it appears both the economy and markets are K shaped.
Take the economy; some aspects are going really well. Spending on services remains robust, thanks to pent-up demand and still resilient labour markets. Meanwhile, manufacturing and other cyclical components continue to show weakness. Or the equity markets. The technology-heavy NASDAQ is up 30%, as is Japan. Meanwhile, the Dow Jones Industrial Average is up a paltry 2%, as is the TSX. Divergent, just like the letter ‘K’.