Can CRB Index Predict Inflation and Deflation?

by David Phillips
(Commodity Trading Today)

The CRB index or indicator was established in 1957 and seems to have accurately forecasted every surge in the deflation and inflation cycles ever since.

Adam Hewison of INO.com uses CRB Index as his main lead indicator for large cyclic trends. If you are thinking of investing in commodities or commodity related stocks you may want to watch this index very carefully.

A look back at the data shows how over the last half-century, the CRB index has shown some notable moves both on the upside and more recently on the downside.

I agree with Adam that this is probably the indicator that traders should keep a close eye on.

If you are someone who trades stocks or commodity futures and are keen to better understand world trade trends, then this is the indicator to watch.

After the tenth revision of this index, it was renamed Reuters-Jefferies CRB Index (NYBOT_CR).

Now you can very easily track this indicator everyday by using MarketClub, and get more information on this commodity index from the Market Club Trader’s Blog.

I have put the list of the 19 markets that are included in the RJ/CRB index as implemented in the 2005 revision:

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 below and see how you can benefit from this indicator.

There is no fee and there is no registration required.

Every success in your training,
David

http://crbindex.commoditycrunch.com