Many people believe that gold, or TIPS is a good way to hedge against inflation but there’s actually a better way. The indicator has actually accurately forecasted every inflationary and deflationary cycle since it’s inception in 1957. INO has done a great video talking about it so check it out here.
The index, now called the Reuters-Jefferies CRB Index (NYBOT_CR), tracks 19 different markets so there’s good diversification built in. The markets that it tracks are:
- 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
If you want to learn more, click here for the full video.