For those readers not quite ready to open a futures account, here’s a good alternative option for you. UBS announced today that they are launching a new index that will focus on food inflation. Needless to say, this index would have produced very nice returns over the past 5 years – and I think the next 5 will bring more of the same.
The nice thing about this index is that it focuses on commodities that are not usually included in typical commodity indices. Most indices have traditionally been heavily weighted in the energy and metal sectors.