Axel Merk discusses the Fed's next moves

Axel Merk from Merk Investments expects the Fed to hike rates later this year.

Merk says the Fed is still in an easing mode. This is not justified with such low unemployment. Raising rates is what's ahead, he says.

Merk sees a risk of inflation in the future. We are in the late stages of an economic cycle. Higher inflation is common in the late stages.

When looking at investments, Merk says the most important thing is to have a strategy. Gold is the "easiest," while not necessarily the "best," diversifier because it has no correlation with the stock market.

Axel Merk is the Founder, President, Portfolio Manager, and CIO at Merk Investments LLC. He is an expert on qualitative research and macroeconomic trends. Mr. Merk is also an expert on macro trends, hard money, international investing, and on building sustainable wealth, and he is a pioneer in the use of strategic currency investing to seek diversification. He is a speaker and author on topics ranging from the economy, gold, and currencies to sustainable wealth and personal finance, as well as a regular guest and contributor to the business media around the world. Mr. Merk is an Author of the book Sustainable Wealth: Achieve Financial Security in a Volatile World of Debt and Consumption.