In the News:
SFO Magazine

Portfolio manager Axel Merk explains to SFO magazine why the strong euro has not had more political resistance. 

" 'What's stunning is that we haven't heard more political backlash from corporate Europe ' about a strong euro, says Axel Merk, manager of the Merk Hard Currency Fund. He notes that large European multinationals have sufficiently hedged their exposure to a weaker dollar but that many of those trades are set to unwind come summer, at which time profit warnings can be expected. Merk thinks euro/dollar is set to correct modestly near term, but he expects a euro worth $1.50 to persist in 2008, save for more-aggressive-than-expected action on the part of the ECB or the U.S. Federal Reserve. "