In the News: Bloomberg

Short-term rates near zero increases the risk of interest-rate sensitivity, portfolio manager Axel Merk tells Bloomberg

"...

One risk is that a long period of short-term rates near zero is 'increasing the interest-rate sensitivity' of consumers and businesses, said Axel Merk, chief investment officer at Merk Funds.

'Any tightening has this amplified effect,' said Merk, who manages about $500 million in Palo Alto, California. 'That is the real challenge. The further we go down this road, the more difficult it is to undo it.'

Still, 'Bernanke wants to have a recovery firmly established before an exit,' Merk said."