Axel Merk Is Bullish on Commodities and Canada

Pinnacle Digest writes: It’s been a wild ride for equity markets and currencies over the last 12 months. In his latest article, Axel Merk, President and CIO of Merk Investments, breaks down what transpired over the last 12 months, the gyrations in volatility and most importantly, his outlook on the remainder of 2012. Contrary to many conservative money managers, his outlook remains quite bullish for a few key sectors and commodities.

Merk believes that further easing across the Western World is very likely. He expects central banks in Japan, England, Europe and the US to remain accomodative. Merk mentions the current composition of voting members on  the Fed’s Federal Open Market Committee and how they are more dovish than in 2011. He thinks they’ll become even more so in 2013 as the push to keep growth positive escalates. Merk also explains why he believes another LTRO package may be implemented by the ECB, which would further drive home the inflation trade.

Given the fact that the entire Western World is on the cusp of more easing, Merk favors commodities, precious metals and even commodity-based currencies. He’s bullish on nations such as Australia, New Zealand and Canada. In particular to Canada, Merk believes the country is well positioned to capitalize on the inflation trade and a growing US economy.

Merk wraps his report up with some interesting insight into China’s future and why we should remain bullish on the country.

Click here to read Axel Merk’s rundown on the outlook for 2012.