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.
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.)