One PM is betting on the dollar to keep weakening for some time. Axel Merk
, PM of the $563.4 million Merk Hard Currency Fund [see profile]
believes the Federal Reserve wants a weaker dollar and low interest rates to spur economic growth, reports Daisy Maxey in The Wall Street Journal Fund Track column
Merk reportedly favors the euro, Swedish krona, Australian dollar and Canadian dollar, and has also recently added some exposure to the yen. Year-to-date, the fund is up 16 percent in the 12 months through June 21, while the average currency fund is up 4.6 percent, according to Morningstar data.
Merk told the pub that the key difference between the European Central Bank and the Fed is that the former has "a far more flexible approach to monetary policy."
Others quoted in the article are Nadia Papagiannis
, alternative investment strategist
at Morningstar and Craig Wear
, a fee-based advisor at Game Plan Advisors Inc.
Stay ahead of the news ... Sign up for our email alerts now