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Day In Review:
- Equity markets saw a broad
based relief rally caused by a breakout of optimism that the U.S.
Congress will revisit the $700bln rescue package
- The FDIC requested
temporary authority to increase the deposit insurance limit from $100K
to shore up the growing crisis of confidence in the domestic banking
system. Members of Congress have suggested the limit could be raised to
$250K
- The US dollar saw the
single largest increase in value against the Euro since its inception. The
catalyst was the change in market sentiment that a rescue plan will be
obtained and concern over select financial concerns in Europe.
Day Ahead:
- Market action will focus on
moves in Washington D.C. to salvage in some form the rescue plan and
information provided by the ADP estimate of the employment situation and
the ISM survey of manufacturing conditions nationwide.
- The focus of the market may
move to the deteriorating economic situation in Europe and the
prospective shakeout in the EU banking system. This does present
additional downside risk for the Euro.
- The day will see a heavy
slate of economic data with the publication of the September domestic
vehicle sales, ADP employment estimate, ISM manufacturing survey and
August construction spending report.
- The EIA petroleum status
report will be released at 10:35 EDT.
Joseph Brusuelas
Chief Economist
VP Global Strategy
Merk Investments LLC
Merk Investments LLC is the manager
of Merk Mutual Funds, including the Merk Asian Currency Fund and the Merk
Hard Currency Fund. The Merk Asian Currency Fund invests in a basket of Asian
currencies. Asian currencies the Fund may invest in include, but are not
limited to, the currencies of China, Hong Kong, Japan, India, Indonesia,
Malaysia, the Philippines, Singapore, South Korea, Taiwan and Thailand.
The Merk Hard Currency Fund invests
in a basket of hard currencies. Hard currencies are currencies backed by
sound monetary policy; sound monetary policy focuses on price stability.
The Funds may be appropriate for you
if you are pursuing a long-term goal with a hard or Asian currency component
to your portfolio; are willing to tolerate the risks associated with
investments in foreign currencies; or are looking for a way to potentially
mitigate downside risk in or profit from a secular bear market. For more
information on the Funds and to download a prospectus, please visit www.merkfund.com.
Investors should consider the
investment objectives, risks and charges and expenses of the Merk Funds
carefully before investing. This and other information is in the prospectus,
a copy of which may be obtained by visiting the Funds' website at www.merkfund.com or calling 866-MERK
FUND. Please read the prospectus carefully before you invest.
The Funds primarily invest in
foreign currencies and as such, changes in currency exchange rates will
affect the value of what the Funds own and the price of the Funds' shares.
Investing in foreign instruments bears a greater risk than investing in
domestic instruments for reasons such as volatility of currency exchange
rates and, in some cases, limited geographic focus, political and economic
instability, and relatively illiquid markets. The Funds are subject to
interest rate risk which is the risk that debt securities in the Funds'
portfolio will decline in value because of increases in market interest
rates. The Funds may also invest in derivative securities which can be
volatile and involve various types and degrees of risk. As a non-diversified
fund, the Merk Hard Currency Fund will be subject to more investment risk and
potential for volatility than a diversified fund because its portfolio may,
at times, focus on a limited number of issuers. For a more complete
discussion of these and other Fund risks please refer to the Funds' prospectuses.
This report was prepared by Merk
Investments LLC, and reflects the current opinion of the authors. It is based
upon sources and data believed to be accurate and reliable. Opinions and
forward-looking statements expressed are subject to change without notice.
This information does not constitute investment advise nor a solicitation or
an offer to buy or sell any products or services. Foreside Fund Services,
LLC, distributor.
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