Axel Merk's Blog

Founder, Portfolio Manager
info [at] merkinvestments [dot] com ()

Axel G. Merk is the portfolio manager for the Merk Hard Currency Fund, a no-load mutual fund that provides U.S. investors with exposure to a basket of hard currencies from countries with strong monetary policies to seek protection against the depreciation of the U.S. dollar. He is also founder and president of Merk Investments, an independent investment advisor implementing growth, value, gold and cash strategies. He closely follows trends that affect world markets and watches global currencies with a macroeconomic approach focused on building long-term value for his clients. For more information, go to MerkFund.com.

Rising Dollar Myth

Year-to-date, the U.S. dollar is up; does that mean we are in a rising dollar environment? Or is it an opportunity to diversify out of the greenback?

Japan: Monetary Madness in Times of Unsustainable Deficits?

Unsustainable debt. Depression-era fiscal policy. Monetary madness. Welcome to Japan. You may not live or invest in Japan, but your investments may well be affected by what is unfolding in the Land of the Rising Sun. Be prepared.

Buy or Sell the Euro? Chaos Investing Unplugged

When we called the euro the potential “rock star of 2013”, we knew it might be a rocky ride. Are we underestimating the incompetence of policy makers? The Europe that is shaping up is much like the old Europe, with implications for the dollar, the euro, and investors’ portfolios.

How Low Will the Yen Go: Depression-Era Policies?

When we asked last November whether the yen is doomed, it was before current Prime Minister Shinzo Abe was elected. We have since answered the question in the affirmative. But to understand why we believe the yen might be worthless one day, we look at Japan’s challenges from different angles.

Buyer’s Remorse at the Fed: Investor Implications

A couple trillion dollars ago the Federal Reserve (Fed) decided quantitative easing (QE) is what the U.S. economy needed. Now, as an increasing number of Federal Reserve Open Market Committee (FOMC) members caution about the dangers of QE, are we seeing a classic case of buyer’s remorse?

Currency Wars Are Evil

Real people may die when countries engage in “currency wars.” Countries debasing their currencies risk. We discuss not only why we believe currency wars are evil, but also what investors may be able to do about them.

Euro: Rock Star of the Year?

After we referred to "Draghi's Genius" last August we received pity and ridicule as feedback. It is no longer taboo to be bullish on the euro, but in our 2013 outlook we took it a step further, predicting the euro will be a "rock star." Despite the recent run-up, we may not have seen anything yet. Let me explain.

Is the Fed Doping the Greenback?

For seven years Ben Bernanke has played Master of the Universe, that is, has been Chairman of the Federal Reserve (Fed). Bernanke vehemently denies his actions put the US economy at risk. Au contraire, having prevented the US economy's collapse, the Fed's actions have yielded profits to taxpayers.

Trillion Dollar Battle: Print, Baby, Print!

While the introduction of a trillion-dollar coin has been shrugged off as nonsense, there are plenty of nonsensical concepts employed in our monetary system. Here we’ll shed light on a few of them.

Hidden Treasury Risks?

While Treasuries are said to have no default risk as the Federal Reserve (Fed) can always print money to pay off the debt, hidden risks might be lurking. As oxymoronic as it may sound, the biggest risk to the economy and the U.S. dollar might be, well, economic growth! Let us explain.

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