In the News: US News

A weak dollar is a double-edged sword, portfolio manager Axel Merk tells US News

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A weak dollar is a double-edged sword, says Axel Merk, founder of Merk Investments and author of Sustainable Wealth. U.S. exporters might see a bump in quarterly earnings as a result of a weaker dollar, but the benefits will be short-lived, he says. The fundamental issue, Merk says, is that advanced economies rarely compete on the prices of goods, because they can't. 'When you think of low-end consumer goods that compete on price, you think of Vietnam,' he says. 'We have no chance to compete with Vietnam. We have to compete in high tech. We have to compete on value added.'"