Welcome to the ‘E-shaped’ economy: Wealth gap is no longer between just high and low earners, the middle class is also struggling

For the past 12 months, investors and consumers had settled into the idea of a “K-shaped economy.” Be it jobs or spending, the K-shape illustrated a growing divide between the fortunes of the wealthy and everyone else. Those at the top of the pile trended higher, while those already struggling pushed lower.

But new analysis from Bank of America suggests the trajectory of middle-class consumers is now pulling away from those on the lower end of the income spectrum: These consumers aren’t doing as well as wealthy people...