Dow Jones Newswires asks portfolio manager Axel Merk about where to find shelter from the storm:

" 'The euro is the anchor of stability in this global turmoil,' said Axel Merk, portfolio manager of the Merk Hard Currency Fund. 'It's a question of risk management. The dollar has already fallen very fast, very far, but there's a risk it may fall further. In such an environment, diversification to a basket of currencies may be sensible.'

Foreign central banks, Merk noted, have been far more prudent in how they have handled their own crises. 'The Federal Reserve, while it has taken some of the right steps, have also taken many wrong steps,' he said. 'Most importantly with regard to the dollar, Fed Chairman (Ben) Bernanke seems to want a lower dollar as a stimulus to the domestic economy. Bernanke thinks a lower dollar will not import inflation. This is a very dangerous strategy as the dollar is vulnerable already.'

With respect to the surging Japanese yen, which just hit a 13-year high against the dollar, Merk believes that given its ongoing leadership issues, the Bank of Japan 'won't be powerful enough to prevent the yen from rising further.' "