The days of investors viewing the yen as a safe haven may soon end, and Merk Hard Currency Fund (MERKX) has recently begun shorting the yen for the first time ever, says Axel Merk, president of Merk Investments. Japan has historically enjoyed a current-account surplus, but that's been deteriorating, and factors -- including its aging population, increasing reliance on imported energy and rising tensions with China -- may accelerate its demise, Merk says. A look at the 12-month rolling correlation of the yen with the VIX index indicates the yen is no long the refuge when fear is elevated, he says.
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