Commodity Research Bureau Index (CRB)
What It Is:
The Commodity Research Bureau Index (CRB) tracks the general trend of the commodities markets.
How It Works/Example:
The CRB Index gauges the collective price trend of the commodities markets. Calculated by the Commodities Research Bureau, the index is published by Thomson Reuters and Jefferies.
Why It Matters:
Commodities prices tend to be directly correlated to inflation. By contrast, bond prices are inversely correlated with inflation and as a result, bond prices tend to move in the opposite direction of commodities prices. For this reason, the CRB is tracked by bond as well as commodities investors.
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Cached on May 22, 2012, 10:50 pm