There is an indicator which has been around since 1957. It has accurately forecasted every inflationary and deflationary cycle since.
Reuters-Jefferies CRB Index (NYBOT_CR) is my number one indicator for large cyclic trends. You may want to watch this index carefully should you want to invest in certain stocks and commodity related markets.
Over the last half-century, this index has seen some remarkable moves both on the upside and more recently on the downside. I believe that this is an indicator that everyone should watch. If you trade stocks or futures and are interested in world trade trends, this is the indicator to track.
Here 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 second and watch this short video and see how you may benefit from this indicator.