By - Nov 1, 2010 7:44 AM ET
Farm Costs Soar
The Standard & Poor’s GSCI Agriculture Index of eight futures climbed 30 percent this year, led by corn, wheat, coffee and cotton, as floods in Canada, Pakistan and China and drought in Russia and across Europe killed crops. The economies of China and India, the biggest consumers of cooking oils, are growing at three times the speed of the U.S. LINK...
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Legendary investor and commodities guru, Jim Rogers has been telling us since 1999 that we're entering a commodities bull market that could last up to 18 years based on history. Mr. Rogers has been dead right ever since while we see ALL-TIME-HIGHS in GOLD and CRUDE OIL, followed by yearly highs in corn, soy beans, sugar, coffee, cotton etc. As we have been telling people on this website that the inflation numbers we see posted by the government do not include "FOOD & ENERGY", which are the most important prices people worry about because it's part of daily living. So, when you sit down with your financial planner and they estimate your retirement income needs based on 2-3% inflation then just ask him to use 10-15% when running his calculations and see what you get. We always say it's better to plan for the worst and hope for the best, especially if you're on a fixed income and in your retirement years. BK
