The Economist's Big Mac index seeks to make exchange-rate theory more digestible. They say it is arguably the world's most accurate financial indicator to be based on a fast-food item.
The Big Mac index is based on the theory of purchasing-power parity (PPP), according to which exchange rates should adjust to equalize the price of a basket of goods and services around the world. For them, the basket is a burger … a McDonald’s Big Mac.
According to this measure, the most undervalued currency is India's Rupee at 67% below its PPP rate. In India, a McDonald’s Big Mac costs just 90 Rupees on average, the equivalent of $1.50 at market exchange rates.
In America, the same burger averages $4.56.
The interactive graphic, below, shows by how much, in Big Mac PPP terms, selected currencies were over- or undervalued.
The index is supposed to give a guide to the direction in which
currencies should, in theory, head in the long run. It is only a rough
guide, because its price reflects non-tradable elements such as rent
and labor. For that reason, it is probably least rough when comparing
countries at roughly the same stage of development.
This chart shows the relative change in market capitalizations of four of the largest publicly trading tech companies. It was published on Daring Fireball back in March.
What happens in a half-second of high frequency trading activity? The answer is a lot more than you'd guess or notice.
This video illustrates an actual half-second of trading in in Johnson & Johnson stock, slowed down so it takes five minutes to watch. Don't worry, you don't have to watch more than a few (slowed down) seconds to get the point. The size and scope of what is happening changes the game and the playing field.
The question isn't whether high frequency trading is about efficient allocation of capital or attempts at short-term market manipulation … it is what you decide to do after you know it is happening and becoming the norm (rather than simply an understood but infrequent risk).
I love getting away from the business in order to work on the
business. That means stepping back from day-to-day issues, to look at
the bigger picture. It also means getting back in-touch with goals and
intent.
In a sense, the process acts like a compass, which sets the general direction for the journey.
Likewise, preparing for a series of meetings (like this) is similar to working on a business plan.
Arguably, one of the primary benefits of
creating a business plan has almost nothing to do with the plan itself.
Working on the plan, immersing yourself in the ideas and possibilities,
and ultimately choosing what stays-in, versus what's filtered out …
there's magic in that.
Yes, the plan is important. But it is the planning that takes you from thinking … to feeling … to knowing. That's where you'll realize the true benefit of business planning.
Building Momentum.
Planning sessions often entail pushing, pulling, probing, and deep thought … Sometimes you hear a question, and it takes the air out of an idea.
Other times a question helps you make a new distinction or consider an
alternate and better course of action. It is often two steps forward, then one step back.
Because of this process, I don't tend to focus on the direct 'answer' or outcome. Instead, I'm measuring whether we are building momentum in the right direction.
How to Tell You Are On the Right Track.
Even though I am analytical, over time, I've come to believe that one
of the best tools to measure whether you are on the right track is 'how
you feel'.
Have you ever gotten a phone call from someone, and when you saw or heard that it was from them, you wilted? In
contrast, have you ever become more animated and energized while
interacting with someone else? It is easy to recognize the difference.
Each person has different thoughts, people, or situations that trigger these positive and negative states.
In sports, this positive state is often referred to as being "In-the-Zone". It is also called "Flow".
It happens when someone is fully immersed in what they are doing, and
has a feeling of energized focus or awareness, full involvement, and
success in the process of their activity.
Being in Flow feels good. On some level, when you are in Flow, you know you're on the right track.
Take a look at the chart and let me know what you think.
I love getting away 
