As if the world’s central banks, especially America’s private central bank the Federal Reserve System, weren’t secretive enough, powerful enough, manipulative enough, and self-serving enough, along comes Facebook, creator of another central bank.
Yep, you heard me.
Facebook is creating a central bank, though I doubt they’ll ever admit it or call it that, to manage Libra.
Be afraid, be very afraid, if Facebook’s Libra cryptocurrency takes hold, because the central bank it’s setting up will be secretive, powerful, and manipulative, just like the Federal Reserve.
Here’s what you don’t know about what Facebook’s really doing with Libra…
Money flows into stocks last week were muted across the board, with retail investors in equity mutual funds and ETFs decidedly on the sidelines ahead of the meeting Saturday between President Xi and President Trump.
The same wasn’t true for institutional money. Speculative bets on the long side increased towards the end of the week as big traders positioned themselves for good news.
Those bets look like they’re paying off already.
After a two-month layoff on trade talks, Xi and Trump agreed to get back to the table.
Pre-open today, Monday, July 1, 2019, futures across the board are all more than 1% higher.
That’s on the heels of a 2.2% gain overnight for the Shanghai Composite and a strong opening and early trading across European bourses.
The big gains likely today should start to bring a lot of the stockpiled money on the sidelines back into equities. Almost $40 billion came out of equity mutual funds and equity ETFs in the first quarter and the second quarter, with full data available soon, looked like more of the same.
Barring any out-of-left-field negative news, equities should see money pouring back in this week, definitely institutional flows, and a turnaround in retail inflows as sidelined investors see clearer sailing ahead.
If major benchmarks all, or almost all, make new all-time highs this week, capital will flow back into to stocks on FOMO flows – that is, “fear of missing out.”