Many economists describe today’s environment as a K-shaped market, where some sectors surge ahead while others fall behind. A clearer way to interpret current market dynamics is through scarcity versus abundance. Scarce sectors include industries where supply is limited and production is difficult to expand quickly, such as energy and utilities. Abundant sectors, by contrast, consist of businesses that can scale production more easily and face fewer resource constraints, including communication services and technology. Over the past year, these two groups have produced relatively similar results, with average returns of roughly 15–17%. Year-to-date, however, the gap has widened considerably. Scarce sectors are up 12.31%, while abundant sectors have gained just 3.55%. This raises an important question for investors: Is the market going to continue rewarding scarcity while discounting abundance?
Source: State Street, The Business Week Graphic
Notes: State Street ETF Performance as of 3/4/2026
This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.
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