Calling it a race to the bottom does not give credit to what we believe are dramatically different cultures across the world. Gold may be the winner long-term, but for those who don’t have all their assets in gold, the question remains how to diversify beyond what we call the ultimate hard currency. To potentially profit from currency wars, one needs to project one’s view of what policy makers may be up to onto the currency space. And if there is one good thing to be said about our policy makers, it is that they may be rather predictable.
Axel Merk is president of Merk Investments, manager of Merk Funds, is an authority on currencies and a pioneer in using strategic currency investing for diversification and down-side protection. Merk is an expert on the global economy, macro trends, monetary policy, and the implications to the U.S. dollar and investing.