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Ken Griffin says inflation is still hitting Americans where they feel it most: everyday prices.<\/p>\n
In a recent conversation with CNBC\u2019s Sara Eisen at the Milken Institute\u2019s Global Conference, the billionaire founder and CEO of Citadel pointed to a simple McDonald\u2019s order to explain why many Americans remain frustrated with the economy.<\/p>\n
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\u201cHave you been to McDonald\u2019s recently?\u201d Griffin asked (1).<\/p>\n
When Eisen said she hadn\u2019t, Griffin described the sticker shock he felt after buying a McDonald\u2019s Coke that morning.<\/p>\n
\u201c$2.50 for a Coke!\u201d Griffin said. \u201cAnd before the Biden administration, it was 99 cents.\u201d<\/p>\n
For Griffin, the point wasn\u2019t just about soda. It was about the way small, familiar purchases can remind Americans that their money no longer stretches as far as it once did.<\/p>\n
He then turned to another household staple: eggs.<\/p>\n
\u201cWhat do you pay for eggs in New York City today?\u201d Griffin asked.<\/p>\n
\u201cEight bucks,\u201d Eisen replied.<\/p>\n
\u201cFor a dozen eggs?\u201d Griffin said.<\/p>\n
\u201cMhm,\u201d Eisen said, nodding. \u201cThe brown ones. It\u2019s what we get at home.\u201d<\/p>\n
The exchange drew laughs \u2014 especially after Griffin admitted that, \u201cin a typical week,\u201d he does not buy his own eggs \u2014 but his broader message was serious.<\/p>\n
\u201cThe United States has endured prolonged and persistent inflation now for six years,\u201d he said. \u201cAnd in some sense, the rise of gasoline prices at the gas station, it\u2019s like a triggering event. It just brings back to all of us the fact that the purchasing power of the dollar has declined so precipitously for six years now.\u201d<\/p>\n
For Griffin, those everyday price shocks are more than annoyances.<\/p>\n
\u201cI think everybody in our country, when we see a price shock in any of our day-to-day commodities, gasoline for example, it\u2019s just deeply triggering,\u201d Griffin said. \u201cAnd I think that there\u2019s just a general apprehension of how much more purchasing power are we going to lose because of the economic policies that we\u2019re pursuing in Washington.\u201d<\/p>\n
The latest inflation data helps explain why that concern still resonates. The Consumer Price Index rose 0.6% in April after a 0.9% jump in March, while prices were up 3.8% from a year earlier before seasonal adjustments, according to the Bureau of Labor Statistics (2). Food prices rose 3.2% over the year, while energy prices surged 17.9%. Gasoline prices alone were up 28.4% from a year earlier.<\/p>\n
Even if headline inflation has cooled from its worst post-pandemic levels, many households are still dealing with the cumulative effects of years of higher prices \u2014 and fresh energy shocks from the Iran war are adding another layer of pressure.<\/p>\n
That longer-term pain is clear in the data. Since the beginning of 2020, the CPI food index (3) has risen 33%, while the energy index (4) has climbed 48%.<\/p>\n
Griffin\u2019s point? Inflation isn\u2019t just a line in a government report. It shows up when a Coke costs $2.50, a dozen eggs costs $8 and a tank of gas feels painful again.<\/p>\n
Protect your purchasing power <\/p>\n
Griffin urged the Trump administration and lawmakers to \u201cstay focused\u201d on strengthening the power of the dollar and making sure Americans\u2019 paychecks go further.<\/p>\n
But history tells a very different story about the dollar\u2019s purchasing power: over time, it has steadily eroded \u2014 no matter who sits in the White House. According to the Federal Reserve Bank of Minneapolis (5), $100 in 2026 had the same purchasing power as just $11.74 did in 1970.<\/p>\n
That\u2019s why many Americans are looking beyond cash and traditional savings when thinking about how to protect their purchasing power.<\/p>\n
One time-tested option is gold. Its appeal is simple: unlike fiat currencies, the yellow metal can\u2019t be printed at will by central banks.<\/p>\n
Gold is also considered the ultimate safe haven. It\u2019s not tied to any one country, currency or economy, and in times of economic turmoil or geopolitical uncertainty, investors often flock to it \u2014 driving prices higher.<\/p>\n
Ray Dalio<\/a>, founder of the world\u2019s largest hedge fund, Bridgewater Associates, told CNBC last year that \u201cPeople don\u2019t have, typically, an adequate amount of gold in their portfolio,\u201d adding, \u201cWhen bad times come, gold is a very effective diversifier.\u201d<\/p>\n Despite a recent pullback, gold prices have surged by more than 35% over the last 12 months.<\/p>\n One way to invest in gold that can also provide significant tax advantages is to open a gold IRA with the help of Goldco<\/a>.<\/p>\n Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold<\/a>, making it a compelling potential option for those wanting to ensure their retirement funds are diversified during rough economic times.<\/p>\n Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver<\/a>.<\/p>\n If you\u2019re curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today<\/a>.<\/p>\n Read More: Here\u2019s the average income of Americans by age in 2026. Are you falling behind?<\/a><\/p>\n Turn inflation into income <\/p>\n Inflation can squeeze households \u2014 but for owners of certain real assets, rising prices can also translate into rising income.<\/p>\n Real estate, for instance, has long been viewed as a powerful inflation hedge.<\/p>\n When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts for inflation.<\/p>\n Over the past ten years, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index (6) has jumped by 87%, reflecting strong demand and limited housing supply.<\/p>\n Of course, high home prices can make buying a home more challenging, especially with mortgage rates still elevated. And being a landlord isn\u2019t exactly hands-off work \u2014 managing tenants, maintenance and repairs can quickly eat into your time (and returns).<\/p>\n The good news? You don\u2019t need to buy a property outright \u2014 or deal with leaky faucets \u2014 to invest in real estate today. Crowdfunding platforms like mogul<\/a> offer an easier way to get exposure to this income-generating asset class.<\/p>\n As a real estate investment platform offering fractional ownership in blue-chip rental properties<\/a>, mogul gives investors monthly rental income, real-time appreciation and tax benefits \u2014 without the need for a hefty down payment or 3 A.M. tenant calls.<\/p>\n Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide<\/a> for you. In other words, you gain access to institutional-quality offerings for a fraction of the usual cost.<\/p>\n Each property undergoes a rigorous vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Offerings often sell out in under three hours<\/a>, with investments typically ranging between $15,000 and $40,000 per property.<\/p>\n Sign up for an account and browse available properties here<\/a> to start investing today.<\/p>\n But residential real estate is just one opportunity. For investors with capital on hand, and who want to truly explore every available real estate vertical, there are other ways to invest.<\/p>\n Another option is Lightstone DIRECT<\/a>, which gives accredited investors access to institutional-quality multifamily and industrial real estate.<\/p>\n Lightstone DIRECT\u2019s direct-to-investor model<\/a> ensures a high degree of alignment between individual investors and a vertically-integrated, institutional owner-operator \u2014 a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate.<\/p>\n With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets<\/a> Lightstone pursues with its own capital, with minimum investments starting at $100,000.<\/p>\n Own a piece of scarcity <\/p>\n Prominent investors like Dalio often stress the importance of diversification \u2014 and for good reason. Many traditional assets tend to move in tandem, especially during periods of market stress.<\/p>\n That message feels especially relevant today. Nearly 40% of the S&P 500\u2019s weight is concentrated in its ten largest stocks and the index\u2019s CAPE ratio hasn\u2019t been this high since the dot-com boom.<\/p>\n This is where, for many investors, alternative assets come into play. These can include everything from real estate and precious metals to private equity and fine art.<\/p>\n It\u2019s easy to see why great works of art tend to appreciate over time. Supply is limited and many famous pieces have already been snatched up by museums and collectors. Art also has a low correlation with stocks and bonds, which helps with diversification.<\/p>\n In 2022, a collection of art owned by the late Microsoft co-founder Paul Allen (7) sold for $1.5 billion at Christie\u2019s New York, making it the most valuable collection in auction history.<\/p>\n Of course, buying art on your own comes with major barriers: high prices, storage, insurance, authentication and the challenge of knowing which works may hold long-term value.<\/p>\n Now, Masterworks is offering a single investment that combines blue-chip art with other scarce assets, such as gold and bitcoin<\/a>, that have historically moved independently of equities and of one another.<\/p>\n The result is a more balanced, all-weather approach to alternative investing. In fact, this model would have outperformed the S&P 500 by 3.1x from 2017 to 2025.*<\/p>\n By leveraging access to museum-quality artwork alongside other uncorrelated assets, the strategy aims to enhance diversification while still pursuing meaningful appreciation.<\/p>\n Discover how diversifying with this strategy can strengthen your portfolio for the years ahead<\/a>.<\/p>\n *Investing involves risk. Past performance is not indicative of future returns. The 3.1x figure reflects a model backtest, not actual fund performance.<\/p>\n You May Also Like <\/p>\n Join 250,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/p>\n Article Sources <\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n Milken Institute\/ YouTube (1)<\/a>; U.S. Bureau of Labor Statistics (2)<\/a>; Federal Reserve Bank of St. Louis (3)<\/a>, (4)<\/a>; Federal Reserve Bank of Minneapolis (5)<\/a>; S&P Global (6)<\/a>; Christie’s (7)<\/a><\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. 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