Last Updated on Thursday, 18 March 2010 12:07 Written by admin Thursday, 18 March 2010 12:07
Seeking 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)
Click here to see the rest of this article at SeekingAlpha.com.
Last Updated on Wednesday, 7 April 2010 12:22 Written by admin Wednesday, 17 March 2010 05:37
Chinese Yuan in the Big Mac Index
| Big Mac | Big Mac | Actual | Implied PPP | Valuation relative | |
| Local | Dollars | Exchange Rate | of the $ | to the $ | |
| 1992 | 6.3 | 1.16 | 5.44 | 2.88 | -89% |
| 1993 | 8.5 | 1.50 | 5.68 | 3.73 | -34% |
| 1994 | 9.0 | 1.03 | 8.70 | 3.91 | -55% |
| 1995 | 9.0 | 1.05 | 8.54 | 3.88 | -55% |
| 1996 | 9.6 | 1.15 | 8.35 | 4.07 | -51% |
| 1997 | 9.7 | 1.16 | 8.33 | 4.01 | -52% |
| 1998 | 9.9 | 1.20 | 8.28 | 3.87 | -53% |
| 1999 | 9.9 | 1.20 | 8.28 | 4.07 | -51% |
| 2000 | 9.9 | 1.20 | 8.28 | 3.94 | -52% |
| 2001 | 9.9 | 1.20 | 8.28 | 3.90 | -53% |
| 2002 | 10.5 | 1.27 | 8.28 | 4.22 | -49% |
| 2003 | 9.9 | 1.20 | 8.28 | 3.65 | -56% |
| 2004 | 10.4 | 1.26 | 8.34 | 3.59 | -57% |
| 2005 | 10.5 | 1.27 | 8.37 | 3.43 | -59% |
| 2006 | 10.5 | 1.31 | 8.03 | 3.39 | -58% |
| 2007 | 11.0 | 1.45 | 7.60 | 3.23 | -58% |
| 2008 | 12.5 | 1.83 | 6.83 | 3.50 | -49% |
| 2009 | 12.5 | 1.83 | 6.83 | 3.50 | -49% |
| 2010 | . | 1.83 | . | . | -49% |
Current Value of the Chinese Yuan
Chinese Yuan Renminbi Exchange RateChinese Yuan ETFs
WisdomTree Dreyfus Chinese Yuan Fund (CYB)
WisdomTree Dreyfus Chinese Yuan Fund seeks to achieve total returns reflective of both money market rates in China available to foreign investors and changes in value of the Chinese Yuan relative to the U.S. dollar.
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