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Weekly Purchasing Power Parity Strategy

*** Purchasing power parity, by comparison, describes the long run behaviour of exchange rates. The economic forces behind PPP will eventually equalize the purchasing power of currencies. This can take many years, however. A time horizon of 4-10 years would be typical. PPP strategy: help money managers find potential long-term investment opportunities!

Overvaluation & Undervaluation of currency

Relative to US Dolloar

Relative to Euro


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