There’s been plenty of action in the market lately, most of it of the negative variety. The S&...
No Inflation Anywhere, Except Here
04/22/2014 7:00 am EST
With US inflation running well below the Fed’s targeted 2% goal, Moby Waller of BigTrends.com examines one area where inflation is going up.
There's been some media attention in recent days about the fact that beef prices have risen to multi-year highs—articles discussing how the price of a good steak is rising dramatically, for example.
But there is additional food inflation going on currently in a wide variety of areas—and this is the kind of inflation that affects the majority of people directly, and one which the Fed seems a bit oblivious about in their reported price inflation data. Also affects the restaurant and packaged goods industries—some more than others.
Just for example, see the following five charts: (the first four are from zerohedge.com, the fifth is from wsj.comand is only a projection of price increases).
Beef Prices Chart
Pork Prices Chart
Shrimp Prices Chart
Egg Prices Chart
Produce Price Rise Projections
There are different factors/explanations involved in why each of these different markets are rising—drought, disease, etc. It's not just the above mentioned commodities, for example, the Coffee ETF (JO) is up huge this year.
JO Daily Chart
As far as ETFs that directly move with these types of food-related agricultural commodities, investors and traders can look at UBS CMCI Food Total Return Index ETF (FUD), (but keep in mind that is lightly traded). The more widely known PowerShares DB Agriculture ETF (DBA) is also up big in 2014 so far. Ditto for iPath Grains ETF (JJG).
DBA Daily Chart
While there's a variety of things we could write and comment about all of this—for the active investor and option trader the most relevant point is: there's always a bull (and bear) market somewhere.
Moby Waller, Co-Portfolio Manager, ETF Tradr Program & Rapid Options Income, BigTrends.com
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