Posts Tagged 'price of Oil/Big Macs'

Oil in Big Macs: Chart of the Day

Source: Gregor.us

The idea for this comparison of Oil to Big Macs, is that a Big Mac is representative of a basket of agricultural goods and thus compares the relative advantage of trading food for oil.  Whats interesting about this is that theoretically, it should be a somewhat inflation-adjusted measure of oil prices.  As of now it appears agricultural goods is undervalued relative to Oil. 

Interesting to see how the plays out in a pairs trade?

Short Oil (USO  United States Oil Fund LP)

Long Agriculture (RJA  ELEMENTS – Rogers International Commodity Index Agriculture Total Return)

Advertisements

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 39 other followers

ETFDesk.com

ETFDesk Spotlight

September 2017
M T W T F S S
« May    
 123
45678910
11121314151617
18192021222324
252627282930