ETFs and the 2010 Big Mac Index
InvestingPublished March 18, 2010 at 12:07 pm 1 CommentSeeking Alpha has once again published investment advice based on the 2010 Big Mac Index and ETFs that track the currencies in the Big Mac Index. In short, the Big Mac Index indicates that some currencies are undervalued and some are overvalued. If you invest long in the undervalued currencies and short in the overvalued currencies, you would profit since currencies tend toward Purchasing Power Parity.
Go long on these currencies:
Chinese Yuan (CYB)
Russian Ruble (XRU)
South African Rand (SZR)
Mexican Peso (FXM)
British Pound (FXB)
Go short on these currencies:
Swiss Franc (FXF)
Euro (FXE) or (long ultrashort EUO)
Canadian Dollar (FXC)
Australian Dollar (FXA)
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[...] The Economist just came out with their 2010 Big Mac Index on March 17. Here it is. Click here for investing tips based on the 2010 Big Mac Index. [...]