Bitcoin’s rally is accelerating as the U.S. Department of Justice’s description of the digital currency as a “legal means of exchange” bolsters the prospect of wider acceptance as an alternative payment system.
Currency traders from Deutsche Bank AG to HSBC Holdings Plc, after enjoying a boom just a few months ago amid speculation the Federal Reserve was preparing to pare record stimulus, are again seeing their profits squeezed.
Merk Investments LLC cut the euro position of its Hard Currency Fund to 14 percent, the lowest in the fund’s six-year history, citing the need for more banking system support in Europe amid the region’s crisis.
The yen will extend its world’s worst performance among major currencies this year as a reinforced Japanese government continues pumping cash into the economy, according to Axel Merk of Merk Investment LLC.
The first U.S. government shutdown in 17 years is stoking speculation that the longer it lasts, the more likely the Federal Reserve will delay reducing its monetary stimulus program, boosting emerging-market currencies at the expense of the dollar.
As nervous investors flee the euro and other currencies for the relative safety of the greenback, it's tough to be a dollar bear. Axel Merk, who has been managing money for currency and gold investors since 1994, isn't about to change his downbeat view on the dollar, though. It's a view that, combined with a liking for gold, has benefited shareholders in his Merk Hard Currency Fund, which aims to profit from a rise in hard currencies against the U.S. dollar. (The "hard" refers to stable currencies from nations with economic and political resilience -- so, generally developed nation currencies.)
We swoop down through the clouds to the Coliseum grounds. We see senators, centurions, aqueducts, Caesar, bloody-handed Brutus, Roman baths. So far, we might be watching a cheesy educational video about ancient Rome or a really bad movie preview.