Friday, January 19, 2007

Now there is an iPod Index .. No Joke

A new index has been created by CommSec. The index announced is called the "iPod Index". It has been created as another way of measuring purchasing power parities. The light-hearted index follows in the footsteps of the Big Mac Index which was introduced in 1986. According to the iPod Index, there is a chance that the Australian dollar may fall by 15% against the US dollar. No currency model is perfect, but the iPod Index has a distinct advantage over the Big Mac Index in that iPods are almost all made at a single point in China, whereas Big Macs are assembled on-site. Other than the variable of transport costs, the iPod may prove to be the more accurate index. For the record, Brazil has the dearest iPods and Canada has the cheapest.

CommSec is owned by the Commonwealth Bank of Austrlaia Ltd (ASX:CBA).
Good Luck Investing.

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