Yardeni Proposes 'G-Shaped Economy' as Boomer Spending Lifts TGT, COST, RCL

Ed Yardeni, president of Yardeni Research, introduced a “G-shaped economy” thesis on May 28, 2026, arguing that America's wealthy baby boomers—and their financial support to adult children and grandchildren—are the true engine behind resilient U.S. consumer spending. The concept challenges the prevailing “K-shaped” recovery narrative. Baby boomers, born 1946–1964, hold roughly $89.6 trillion in assets, half of all U.S. household wealth, and spent an average $69,303 per household in 2023 according to Fed and BLS data. Their leisure expenditures hit a record in March, and healthcare employment grew by 618,000 jobs in the year through April, while other sectors shed 367,000 positions. Yardeni notes this demographic shift is unprecedented, with 70% of millennials and Gen Z surveyed reporting they had borrowed from family for basic expenses. Retail and travel stocks tied to this spending appear poised to benefit. Yardeni highlighted Target (TGT-US), Costco (COST-US), and Dick’s Sporting Goods (DKS-US) as potential winners, alongside cruise operators Royal Caribbean (RCL-US) and Viking Holdings (VIK-US), which cater to multi-generational family travel.