Axel Merk is one of the clearest thinkers on the currency and bond markets today. His business places him in the daily flow of the most global, sophisticated part of the financial markets. Yet, he also has an excellent grasp on personal finance and the issues related to building and preserving family wealth.
The news in the fixed income market is confusing at best - currency wars, a falling US dollar, QE2 and threat of sovereign debt defaults. For many years, government bonds have been a safe haven for those attempting to preserve wealth. Now that is being called into question.
Current applications of modern portfolio theory tells us to assume that the future will be like the past. With significant assets being shifted to corporations and liabilities being shifted back into governments, is that a reasonable assumption? I say no, not necessarily.
Should fixed income investments continue as an important part of a balanced portfolio? I would argue yes. However, navigating these markets is far more treacherous than it used to be. That is why I am so pleased Axel will be joining us for the Solari Report this Thursday evening.
Catherine will review Money & Markets and will have additional comments on trading the gold-silver ratio in Ask Catherine.
More at the blog.
Listen live on Thursday evening by phone or online, or listen at your convenience by downloading the MP3 after it is posted on Friday.
Subscribers to The Solari Report receive access to our complete archive of calls via MP3 recordings and Solari Audio Seminars. You can learn more and subscribe here.