For about 50 years now there has been an indicator that has accurately forecasted every inflationary and deflationary cycle. Obviously I don’t have first hand experience of that, but that is what I have read.
There are usually a few indices that are key to watch. Usually they represent what is happening within that specific sector. You may want to watch this index carefully should you want to invest in certain stocks and commodity related markets.
The index is called Reuters-Jefferies CRB Index (NYBOT_CR). Depending on your what service you use, you may or may not be able to track it; however, it can easily be tracked using MarketClub.
Below is a list of the 19 markets that are included in the RJ/CRB index:
Metals: aluminum, copper, gold, nickel, silver
Energies: crude oil, heating oil, natural gas, unleaded gas
Grains: corn, soybeans, wheat
Food & Fiber: cocoa, coffee, cotton, orange juice, sugar
Livestock: lean hogs, live cattle
Take a few minutes to watch this short video and see how you can benefit from this indicator.
