I felt like I hit the jackpot when I learned technical analysis (aka, chart reading). Why? Because it taught me how to tell what’s coming down the pike ahead of time.
Everyone wishes they knew what tomorrow’s newspaper will say. However, by looking at long-term charts of stocks and commodities, we can tell what’s coming down the pike.
The good news is that a buy signal is just about to emerge again on the weekly charts of certain commodities. The bad part? It involves the basis of much of the food we all eat.
Corn, soybeans and wheat are all about to have another long-term buy signal shortly. This means that the prices of these foods will head higher soon at the producer level, which will eventually spill over on the consumer level where you and I buy these items in the grocery stores.
It could be depressing to hear that some of the most commonly used foods in life are about to head higher soon.
After all, you never have to buy a stock. You don’t have to buy a bond and you don’t have to even buy real estate. However, you do have to buy food if you want to live.
It’s like one man said, “I’m addicted to breathing.” It’s the same way with food. We have to have it. So when what you “have to have” is going up, it never feels good — unless you know how to counteract this.
Believe it or not, there is a light at the end of the tunnel. You see, investing helps to solve many of life’s problems. Inflation is one of life’s biggest problems. It increases your cost of living through the years. You’re in a race against it whether you realize it or not.
Food inflation is one of the worst forms of inflation because you can’t escape it unless you’re invested in the foods that are going up.
Formerly, you would have had to go into the futures market and buy leveraged futures contracts that eventually expire. That’s a tough gig for most people.
Thankfully, these days there are exchange-traded funds (ETFs) that track corn, wheat and soybeans. There are also stocks that are involved in the food business like John Deere and Archer Daniels Midland, for instance.
So if you invest in the foods that are going up or the companies that help with the food process, then you can prosper as these ETFs and stocks rise. The rise in these assets will help to offset the increases in food costs that are coming, which none of us can control.
In other words, by buying these assets, you are hedging part of your cost of living so that it does not bring down your standard of living.
So these long-term technical indications on the charts are telling me that the newspapers later on in 2013 will be talking about rising food prices once again. Yet, the readers of my Ultimate Wealth Report newsletter know this ahead of time. Therefore, take advantage of this early tip-off and prepare for what’s coming.
Want to fight even more forms of inflation that are plaguing your life like rising energy costs, etc.? Then come join us in the Ultimate Wealth Report newsletter. You can find out more about what I do in that newsletter here
About the Author: Sean Hyman
Sean Hyman is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He is also the editor of Ultimate Wealth Report. Discover more by Clicking Here Now.
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