17. July 2009 by Dan Walkow, CFA, CMT.

Power companies are scrambling trying to get ahead of the curve for the anticipated demand for power for electric powered vehicles.

There is a lot of work to be done from fixing up an aged power grid to installing power delivery systems capable of “fast charging” electric vehicles.

A new growth driver for electric utilities offers some interesting investment opportunities.

To get a peek of what is on the horizon read: Utilities Scramble to Meet Power Needs of Electric Cars at Time.

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17. July 2009 by Dan Walkow, CFA, CMT.

The Economist’s Big Mac index, a lighthearted guide to valuing currencies, provides some clues. It is based on the theory of purchasing-power parity (PPP), which says that exchange rates should equalise the price of a basket of goods in each country. In place of a range of products we use just one item, a Big Mac hamburger, which is sold worldwide. The exchange rate that leaves a Big Mac costing the same in dollars everywhere is our fair-value benchmark.

On July 13th, according to the Big Mac Index the Canadian dollar was undervalued by about 6% relative to the US dollar but with the run up in the Canadian dollar over the past fews days we are now at close to fair value.

Noteworthy is the fact that according to the Big Mac Index China is undervalued by 49%.

See the Big Mac Index for most countries around the world here.

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