Make a $20 Hamburger Affordable Again

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

06.02.2026 | 05:00 Uhr

Jim Caron-Podcast

It used to be that you could go to a diner and get a hamburger deluxe – lettuce, tomato, pickle and fries – for $12. Now it’s $20.
This is the “inflation” people feel every day and there is no convincing them that inflation is under control.
However, I think the problem is framed incorrectly and misunderstood: As price levels are unlikely to come down, the solution is to increase incomes.
So to make a $20 hamburger affordable again there must be an increase in income without increasing inflation. And how do you do that?
Let’s get into it!

^{Risk Considerations}
^{Diversification}^{does not eliminate the risk of loss. There is no
assurance that the Strategy will achieve its investment objective. Portfolios
are subject to market risk, which is the possibility that the market values of
securities owned by the portfolio will decline and that the value of portfolio
shares may therefore be less than what you paid for them. Market values
can change daily due to economic and other events (e.g. natural disasters,
health crises, terrorism, conflicts and social unrest) that affect markets, countries,
companies or governments. It is difficult to predict the timing, duration, and
potential adverse effects (e.g. portfolio liquidity) of events.
Accordingly, you can lose money investing in this portfolio. Please be aware
that this strategy may be subject to certain additional risks. There is the
risk that the Adviser’s}^{asset allocation methodology}^{and
assumptions}^{regarding the Underlying Portfolios may be incorrect in
light of actual market conditions and the Portfolio may not achieve its
investment objective. Share prices also tend to be volatile and there is a
significant possibility of loss. The portfolio’s investments in}^{commodity-linked
notes}^{involve substantial risks, including risk of loss of a
significant portion of their principal value. In addition to commodity risk,
they may be subject to additional special risks, such as risk of loss of
interest and principal, lack of secondary market and risk of greater
volatility, that do not affect traditional equity and debt securities.}^{Currency
fluctuations}^{could erase investment gains or add to investment
losses.}^{Fixed-income securities}^{are subject to the ability of
an issuer to make timely principal and interest payments (credit risk), changes
in interest rates (interest-rate risk), the creditworthiness of the issuer and
general market liquidity (market risk). In a rising interest-rate environment,
bond prices may fall and may result in periods of volatility and increased
portfolio redemptions. In a declining interest-rate environment, the portfolio
may generate less income.}^{Longer-term securities}^{may be more
sensitive to interest rate changes.}^{Equity and foreign securities}^{are
generally more volatile than fixed income securities and are subject to
currency, political, economic and market risks.}^{Equity values}^{fluctuate
in response to activities specific to a company.}^{Stocks of
small-capitalization companies}^{carry special risks, such as limited
product lines, markets and financial resources, and greater market volatility
than securities of larger, more established companies. The risks of investing
in}^{emerging market countries}^{are greater than risks associated
with investments in foreign developed markets.}^{Exchange traded funds
(ETFs)}^{shares have many of the same risks as direct investments in
common stocks or bonds and their market value will fluctuate as the value of
the underlying index does. By investing in exchange traded funds ETFs and
other}^{Investment Funds}^{, the portfolio absorbs both its own expenses
and those of the ETFs and Investment Funds it invests in. Supply and demand for
ETFs and Investment Funds may not be correlated to that of the underlying
securities.}^{Derivative instruments}^{can be illiquid, may
disproportionately increase losses and may have a potentially large negative
impact on the portfolio’s performance. A}^{currency forward}^{is a
hedging tool that does not involve any upfront payment. The use of}^leverage^{may
increase volatility in the Portfolio.}