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Jing Pan
Updated Jun 4, 2026
American consumers have kept the economy afloat for years, even as inflation, high borrowing costs and rising grocery bills squeezed household budgets. But some of the country’s biggest corporate leaders are now warning that shoppers may finally be hitting a breaking point.
Kraft Heinz CEO Steve Cahillane recently offered one of the bluntest assessments yet.
“They’re literally running out of money at the end of the month,” Cahillane said in a recent interview. “We’re seeing negative cash flows in the lower-income brackets where they’re dipping into savings.”
The company behind brands like Heinz, Kraft and Philadelphia is now cutting prices on some products that had grown too expensive, increasing promotions and rolling out smaller package sizes at lower price points.
Cahillane said that the industry has endured years of “volume degradation” because consumers had to absorb “too much price.” Another inflation shock, he warned, is the last thing households need.
“We could see more significant inflation and nobody wants to see that,” he said.
Cahillane’s warning did not come in isolation.
McDonald’s CEO Chris Kempczinski has also flagged pressure on consumers, pointing to “heightened anxiety.” CFO Ian Borden noted that higher gas prices are hitting lower-income households especially hard — and said he expects that pressure to continue.
Then there’s Whirlpool CEO Marc Bitzer, who recently told analysts that the war in Iran “amplified consumer concerns about the cost of living.”
Whirlpool’s North America chief Juan Carlos Puente added that “consumer sentiment collapsing to record lows” due to the Iran war prevented demand from recovering after winter storms, leading to “recession-level industry contractions,” with discretionary demand down roughly 15%.
When executives across food, restaurants and appliances are all pointing to the same problem, it suggests something serious: While headline inflation has cooled from its pandemic-era highs, the cost-of-living crisis is still hitting consumers where it hurts.
The good news? Throughout history, savvy investors have always found ways to shield themselves from inflation’s bite. Here’s a look at three time-tested strategies.
A classic safe haven
When it comes to preserving wealth and fighting inflation, few assets have stood the test of time like gold.
Its appeal is simple: Unlike fiat currencies, the yellow metal can’t be printed at will by central banks.
Gold is also considered the ultimate safe haven. It’s not tied to any one country, currency or economy and in times of economic turmoil or geopolitical uncertainty, investors often flock to it — driving prices higher.
Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, has repeatedly highlighted gold’s role in a resilient portfolio.
“People don’t have, typically, an adequate amount of gold in their portfolio,” Dalio told CNBC last year. “When bad times come, gold is a very effective diversifier.”
Despite a recent pullback, gold prices have surged by more than 30% over the last 12 months.
One way to invest in gold that can also provide significant tax advantages is to open a gold IRA with the help of Goldco.
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. This makes gold a compelling potential option for those wanting to ensure their retirement funds are diversified during rough economic times.
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.
If you’re curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.
A time-tested income play
Gold isn’t the only asset investors turn to during inflationary times. Real estate has also proven to be a powerful hedge.
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.
Over the past ten years, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index has jumped by 88%, reflecting strong demand and limited housing supply.
Of course, high home prices can make buying a home more challenging, especially with mortgage rates still elevated. And being a landlord isn’t exactly hands-off work — managing tenants, maintenance and repairs can quickly eat into your time (and returns).
The good news? You don’t need to buy a property outright — or deal with leaky faucets — to invest in real estate today. Mogul is a crowdfunding platform that offers an easier way to get exposure to this income-generating asset class.
As a real estate investment option offering fractional ownership in blue-chip rental properties, it gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 a.m. tenant calls.
Fully Funded
The Harden
Phoenix, AZ$323K
Invested80+
Investors Fully Funded
The Yamamoto
Poconos, PA$909K
Invested80+
Investors Fully Funded
The Alcaraz
Lizella, GA$833K
Invested80+
InvestorsThese are a few examples of properties from Mogul. Browse available properties on their website.
Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. In other words, you gain access to institutional-quality offerings for a fraction of the usual cost.
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, with investments typically ranging between $15,000 and $40,000 per property.
Sign up for an account and browse available properties here to start investing today.
Another option is Lightstone DIRECT, which gives accredited investors access to single-asset multifamily and industrial deals.
Lightstone DIRECT’s direct-to-investor model ensures a high degree of alignment between individual investors and a vertically-integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate.
Featured
Residential
Columbus, OH Featured
Industrial
Tobyhanna, PA Featured
Residential
Beverly Hills, MIThese are a few examples of past properties or acquisitions from Lightstone. Explore more investment opportunities when you register with Lightstone DIRECT.
With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000.
A finer alternative
Prominent investors like Dalio often stress the importance of diversification — and for good reason. Many traditional assets tend to move in tandem, especially during periods of market stress.
That message feels especially relevant today. Nearly 40% of the S&P 500’s weight is concentrated in its ten largest stocks and the index’s CAPE ratio hasn’t been this high since the dot-com boom.
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 collectibles.
But there’s one store of value that routinely flies under the radar: It’s scarce by design, coveted worldwide and frequently locked away by institutions.
We’re talking about post-war and contemporary art — a category that has outpaced the S&P 500 with low correlation since 1995.
It’s easy to see why art pieces often fetch new highs at auctions: The supply of the best works of art is limited and many of the most desirable pieces have already been snatched up by museums and collectors. That scarcity can also make art an attractive option for investors looking to diversify and preserve wealth during periods of high inflation.
Until recently, purchasing art has been a domain reserved for the ultra-wealthy — like in 2022 when a collection of art owned by the late Microsoft co-founder Paul Allen sold for $1.5 billion at Christie’s New York, making it the most valuable collection in auction history.
Now, Masterworks — a platform for investing in shares of blue-chip artwork by renowned artists, including Pablo Picasso, Jean-Michel Basquiat and Banksy — can help you get started with this asset class. It’s easy to use and, with 27 successful exits to date, Masterworks has distributed more than $65 million in total proceeds (including principal).
Simply browse their impressive portfolio of paintings and choose how many shares you’d like to buy. Masterworks can handle all the details, making high-end art investments both accessible and effortless.
Sold
Joan Mitchell
17.8% annualized net return Sold
Yayoi Kusama
17.6% annualized net return Sold
George Condo
21.5% annualized net returnThese are a few examples of sold artworks from Masterworks. For a full list of currently available art, visit Masterworks' Price Database.
New offerings have sold out in minutes, but you can skip their waitlist here.
How it works
- Step 1: Accredited investors need to visit Masterworks.com, where they’ll be prompted to enter a few details about their portfolio and investment goals.
- Step 2: Investors can schedule a call with one of Masterworks Advisers — registered investment representatives — to determine which current art holdings match their investment goals. The benefit is that you can select one or many art pieces, buying fractional shares based on your interests and goals.
- Step 3: As soon as Masterworks sells a piece you invested in, you get a return from the net proceeds. While every artwork performs differently, overall the past three exits — where Masterworks has acquired, held and eventually sold the art work — delivered median returns of 17.6%, 17.8%, and 21.5%*.
Note that past performance is not indicative of future returns. Investing involves risk. See Reg A disclosures at masterworks.com/cd .
Jing Pan
Investing Reporter
Jing is an investment reporter for Moneywise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.
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