New “Virtual Currency” Gives a Clearer Measure of Global Purchasing Power And Protects Against Currency Risks

Today, all stock markets and currency markets are global.  Successfully trading and investing in them requires discerning true value in an environment where value is measured in constantly fluctuating currencies. The analysis is complex, many-layered, and never-ending. EWI’s new Stable Currency Benchmark™ (SCB) simplifies value judgments in dynamic markets by creating a stable measure of global purchasing power.

The SCB blends four major currencies, each selected for individual stability, into a new, super-stable aggregate currency that any asset can be compared against. At last there is a steady, dependable ruler to use in measuring values. As an example, the chart below shows how measuring an asset in a single currency distorts the picture of its true global purchasing power.

Note:  The related Stable Currency Index™ serves as an investment index that provides safe haven from currency risk and gives a clearer measure of global purchasing power. For more information about the SCI, click here.