Axel Merk to Moneynews: US Dollar Is the ‘Last Domino Standing’…”So gold is one of the tools you may want to have in your toolbox.”
By Dan Weil and David Nelson
Monday, 24 Jun 2013
The dollar is one of the few financial assets to thrive since Federal Reserve Chairman Ben Bernanke indicated last Wednesday that the Fed may taper its quantitative easing (QE) soon.
But the dollar’s strength won’t last long, Axel Merk, chief investment officer of Merk Investments, told Newsmax TV in an exclusive interview.
The Dollar Index, which measures the greenback against six major currencies, gained 2 percent from Tuesday’s low through Friday.
“In many ways, the dollar is like the last domino standing,” Merk said. “Remember, in 2008, there was a flight to the dollar as well. But the other asset class that did well was Treasurys. Well this time around, there is no hiding in Treasurys.”
The yield on the 10-year Treasury note rose from 2.54 percent Friday to 2.59 percent Monday, the highest level in almost two years.
“Some people are saying the dollar’s going to be doing great: we have all of this tightening happening at the Fed and what not,” he noted. “Well, guess what? We just think that is the last bubble out there.”