Do You Believe Bernanke or This Chart?

About 20 years ago, I learned to trust charts over what others were saying … even if they were central bankers.

Ben Bernanke told us that we’re not really experiencing inflation. However, if I look to the chart of the CRB Commodity Index, which essentially embodies inflation, I see that inflation bottomed in June/July and it has been heading upward ever since.

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But when did it get a turbo boost? It was when Bernanke provided stimulus to the market at the latest FOMC meeting. But that’s probably just a coincidence, right?

Yeah … I don’t think so either.

This basket of 19 commodities is heading higher, and it could be scary … unless you’re a commodity investor like we are in the Commodity Trend Alert newsletter.

You see, the CRB Commodity Index involves the stuff you buy all the time in one form or another. The index tracks everything from cocoa and coffee to unleaded gas and copper.

In life, you may or may not ever buy a stock. There is no requirement to do so. But be assured you will buy corn, wheat and all the other commodities in this index. That means when this index heads higher, it will hit you in the wallet one way or another.

Inflation is being stoked. I’m going to trust the chart over Bernanke, because charts don’t lie. And the best way I know of to hedge yourself against the rise in food and energy costs is to be invested in commodities.