Last Updated on Saturday, 13 February 2010 03:58 Written by admin Saturday, 30 January 2010 03:51
Dr. Steve Sjuggerud of Daily Wisdom thinks that the Euro is on a downward trajectory. Why? Of course it’s partially because of the issues that are happening currently in the Eurozone, Greece’s debt problems, and the fear of contagion to other Eurozone countries. One of his major arguements however is the Big Mac Index.
“One of my favorite simple indicators of whether a currency is overpriced or underpriced is the “Big Mac Index” from The Economist magazine… As the chart here shows, whenever a Big Mac in Europe is 50% more expensive than a Big Mac in the States, the euro crashes.”
Learn More