Random Random Thoughts Rebooted

Remove this Banner Ad

Log in to remove this ad.

sataris said:
GotTheGoodes
RW

The Big Mac index and using it as a guide for forex trading.

Yay or Nay?
Click to expand...
Can't give you financial advice or tell you what to do (You could sue me).

What I will say though is that it's meant to measure purchasing power parity (ppp) by comparing "the same basket of goods" in different locations.

E.g. factoring in the exchange rate, is the price of a big mac in Melbourne the same as the price of the same big mac in New York?

The issue with this basket of goods is that they are often not exactly the same. They are part of a varied enviroment, with different potential substitutes & competition. Further the "value" of a big mac in one country may not be the same as in another country due to different demand/supply factors or cultural factors.

I'd always try to use a more broad basis for the "basket of goods" (diversifying the basket can help reduce variations in misaligned value systems etc) &/or pick something more "stable" and "general" (such as water, oil, corn etc).

But a great, simple, easy to use index that most of us can relate to.
 
GotTheGoodes said:
Can't give you financial advice or tell you what to do (You could sue me).

What I will say though is that it's meant to measure purchasing power parity (ppp) by comparing "the same basket of goods" in different locations.

E.g. factoring in the exchange rate, is the price of a big mac in Melbourne the same as the price of the same big mac in New York?

The issue with this basket of goods is that they are often not exactly the same. They are part of a varied enviroment, with different potential substitutes & competition. Further the "value" of a big mac in one country may not be the same as in another country due to different demand/supply factors or cultural factors.

I'd always try to use a more broad basis for the "basket of goods" (diversifying the basket can help reduce variations in misaligned value systems etc) &/or pick something more "stable" and "general" (such as water, oil, corn etc).

But a great, simple, easy to use index that most of us can relate to.
Click to expand...

I've taken your advice and bought a Big Mac.

I'm hoping it will appreciate in value over the next few years.

Cheers.
 

(Log in to remove this ad.)

Ticky009 said:
Just heard Anthony Bourdain has passed. He was one of my foodie idols. Such sad news.
Click to expand...
Yep. Prob my favourite celebrity chef in terms of entertainment & where he come from, his opinion etc.

So sad. In fact, when I first read it this morning I was pissed off. So selfish & completely ruined all the really good work he did in being a role model dragging hinself out of addiction into "success". But moreso just so sad he felt that was an option. It really should never be.
 
Im at my favourite pub, and there are north Korean flags flying on the building next door.

I think that Trump Kim Jong UN meeting is happening next door...

Sent from my SM-G935F using Tapatalk
 
sataris said:
Im at my favourite pub, and there are north Korean flags flying on the building next door.

I think that Trump Kim Jong UN meeting is happening next door...

Sent from my SM-G935F using Tapatalk
Click to expand...
Keep an eye on your meal mate. They both look like they’ll grab anything.
 
You must log in or register to reply here.

Remove this Banner Ad

Back
Top