Markets Not Pricing In Panic According To Axel Merk

October 13, 2020

Money manager Axel Merk manages about $1 billion in assets.  Surprisingly, the signals he is getting from the markets are relatively calm despite the political storm sweeping the country.  Merk explains, “The markets are not pricing in a panic.  There is also a betting market about when the results are going to be known, and that has priced in less tensions.  The results are going to be known sooner rather than later.  The markets are pricing in a clear winner.”

Maybe the markets are seeing what Merk is seeing no matter who wins in November.  Merk says, “We love one guy and hate the other guy.  I care more about fiscal spending.  As I said earlier, yeah, we are going to spend a boatload of money.  They are going to spend it a little differently and on different priorities, but they are going to spend a boatload of money.  They are politicians, and they can’t help it.  One big difference with Trump is we are going to get a reduction in regulation and regulatory burden, and with Biden we will get an increase.”

Either way, expect deficits and money printing as far as the eye can see or until the US dollar breaks.  Merk says, “What’s going to break the dollar?  Something is going to break it, we don’t know.  Maybe it’s going to be . . . coming from some place we don’t know about.  The states are good candidates, and who knows which state it’s going to be.  If the Democrats have a sweep, maybe they bail out the states. . . . We have quite a polarized electorate these days, and if we are going to bail out the Democrats, I don’t think the other states are going to like it. . . . Marriages often break up over money, and if we cannot do our budgeting, there is going to be fighting.  Of course, the Fed is probably going to help everybody out, and we are going to patch this thing up longer than we can imagine.”

Merk likes gold because of all the money printing and the eventual inflation that is surely coming from printing all those digital dollars.  He also likes a diversified portfolio, but one of his very favorite investments is gold.  Merk tells me he holds more than some people would and is holding it as a core investment.  His simple advice for the little guy is, “Spend less money than you make so you can save more.”

Join Greg Hunter of USAWatchdog.com as he goes One-on-One with money manager Axel Merk, founder of Merk Investments.

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