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iTrust Daily Insight

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16th October
iTrust Daily Insight
Edition 10.16.2019

Dear Friends and Readers:

Mid-day market comment — crypto-currencies down 2-7% today

We are sending out this quick, mid-trading-session update only to provide some insight what may be happening today in the markets for crypto- and digital- currencies.  Generally, digital currency prices are down 2%-7% today — a relatively big drop given the context of little changed gold, US bond and global stock prices.

Yesterday we sent out a note how to prepare portfolios ahead of the Democratic Party debate (which to us indicate that the internal polls of all the candidates are pointing to an Elizabeth Warren lead) and also ahead of any news of a potential breakthrough which may lead to a “soft Brexit” and the UK avoiding a “hard Brexit”.  We now believe the markets have likely priced in a pretty high likelihood of an Elizabeth Warren candidacy and also a pretty high likelihood for a soft Brexit.  

But…

Only crypto- and digital- currency prices seem to be adjusting more than 1%.

We believe there is likely some important news on Facebook’s proposed digital currency. 

Regulators globally were concerned about allowing Facebook to control both so much social media information (1/3 of the planet, 2.7 billion users, use FB’s platforms every month) and also potentially so much financial data.

Many digital currency investors may have thought that FB’s entry to the digital currency space would have brought more legitimacy as well as more liquidity to the digital currency space more broadly.

To the extent such traders now are disappointed that FB’s entry may never occur or will be substantially delayed, prices of currently-existing digital- and crypto-currencies are adjusting — down.

We will provide more analysis after the close of the US bond and equity markets in a few hours but we wanted you to have at least this analysis so that it might inform your trading and investing.

As always, please direct your questions to iTrust Capital’s Blake Skadron; the Economics Team will get back to you very quickly in the unlikely event he can’t help you.

Tim Shaler is Chief Economist of iTrust Capital.  He is a published Real Estate economist, was a portfolio manager and asset allocation expert at his previous firms and is an adjunct professor at Webster University. His MBA (Finance) and MA in Russian Economic History are both from the University of Chicago.

For all media inquiries, please contact Blake Skadron at b.skadron@itrustcapital.com.

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