Chart of the Day - Wednesday, September 18th, 2019

Today’s Chart of the Day was shared on Twitter by Dana Lyons (@JLyonsFundMgmt). It is a line chart of the Thomson Reuters CRB Commodity Index. The Index tracks 19 different commodities including; Crude Oil, Live Cattle, Copper, Soybeans, Lean Hogs, Gold, Corn, Wheat, Cotton and more. The index divides these commodities into four groups: 39% Energy, 34% Agriculture, 20% Metals and 7% Livestock. Dana notes that the index is currently testing its downtrend line from 2014. It's down 43% in that time, however, the downtrend really goes back over a decade to the 2008 peak (not shown on the chart.) It's interesting to think about how a breakout in commodity prices would impact inflation data.