Strong Economy, Weak Stock Market: Why Many Americans Are Confused About the Economy in 2026

Headlines say the stock market is booming and GDP is growing, yet most Americans feel like the economy is struggling. This isn't a contradiction — it's a K-shaped economy. The top 40% of households, who hold the vast majority of stock wealth, are thriving. Everyone else is squeezed by sticky inflation, weak real wage growth, and a soft job market. Here is what's actually happening, and what it means for your own finances.