The Next Wave Of Inflation Is About To Begin!

The next wave of inflation is about to begin. And believe it or not, you'll be able to tell when it begins.

It's measurable. That's right, it's not as abstract as people think.

Many people know what inflation is because they've lived it. They can all tell you what it cost to get a gallon of gasoline or how much it cost to go to the movies when they were a child vs what it is now. That's inflation. The rise in the cost of goods and services.

About a month ago, I wrote an article about how to tell when inflation will begin its next leg up. You can read it here:

I'm writing to you now because we're likely upon the cusp of the next wave of inflation. Yep, the central bank is downplaying it and so are most economists and analysts. (Of course, the central bank has no incentive to tell you about inflation ahead of time, in my opinion).

They use a lot of metrics and formulas that many dispute as to their accuracy. However, I've found that charting the CRB Commodity Index is the best way I've found to quantify and measure inflation's rise.

When costs of these 19 commonly used commodities (like energy, agriculture and metals, etc.) go up, it raises wholesale inflation which raises what it costs to produce a product. Eventually that passes through to consumer inflation (which is the one you'll care most about) which is when the producer of goods passes on the added costs to you, the consumer.

As this happens, the cost of products and services rise, which dilutes the purchasing power of your dollar.

Being aware of inflation and where it's going and how to combat it are some of the things that I specialize in, in the Logical Investor newsletter (found in the Premium tab of www.seanhyman.com ).

Believe it or not, there are ways to combat the rise of inflation against your own purchasing power. You don't have to fall victim to it.

But today, I want to show you how close we are to the launching of the next wave of inflation.

From Elliott Wave analysis, we know that downtrends end after three long waves lower, noted as a-b-c waves on the chart. Wave C ended as the calendar was turning over to 2016 and the red downtrend line shortly was broken.

From there the index began rising (as seen by the green line). Also, the RSI and MACD had been foretelling of this move that is now unfolding, since these indicators had been firming up over the last 2-3 years.

The "line in the sand" that confirms inflation's next rise is the black line on the chart. Once the heads above the 196ish area, and holds above it, it will have broken the black line and it will show the next wave of inflation has begun.

You'll be aware of it on this chart much sooner than you'll ever hear about it on the nightly news.

By the way, this chart is one day delayed info on stockcharts.com. So the chart shows the index trading at around 190. But in real-time, the index is now trading at 194. So we're getting very close to the 196 level. Once it starts holding above this level, the next wave of inflation has begun (whether the central bank or others acknowledge it or not).

If you're concerned about the next wave of inflation and you want to properly battle it, come and join us in the Logical Investor newsletter, found in the Premium tab of www.seanhyman.com . We've already got two positions that will respond very well to the next wave of inflation.

God bless!

Comments
No. 1-13
Sean Hyman
Sean Hyman

Editor

Thank you. I appreciate that.

parda
parda

thanks Sean your a great guy!

Sean Hyman
Sean Hyman

Editor

Gold is the best inflation hedge, in my opinion. Yes, commodity-currencies (like the Canadian dollar, Australian dollar and New Zealand dollar) tend to do well when inflation rises. The Canadian dollar (CAD), in particular has a high correlation to oil most of the time. FXC is an ETF we had in one former portfolio to take advantage of this.

parda
parda

How about commdity curencies ?Do they experience inflation at all when price of commodites rise?I ask coz I dont understand well the stock market and dont think I have as much oportunities to invest in them here in Croatia but I have accumulated some savings in comodity currencies and gold.Is that good strategy for my own present oportunities?thanks again.I will end with this question.I apreciate you taking the time to answer,realy!!!

Sean Hyman
Sean Hyman

Editor

You're welcome.

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