6A – Identifying Opportunities in Economic & Regulatory Trends
Economic Trend One: “Are U.S. Stocks On Their Way Out?”
a) https://www.forbes.com/sites/investor/2020/02/06/are-us-stocks-on-their-way-out/#7837467ea7a9
b) This economic trend suggests that US stocks may lose value in the future and other forms of investment may out perform the stock market in the future. US large-cap funds are at the highest risk for loosing value in the future. The This shows an opportunity exists for financial advisors to help clients navigate their investments, into looking into other places to invest. Some investors may be comfortable investing in the US stock market, but will need help with other investments once the stock market begins to drop, such as investing in foreign funds a small to mid-cap funds.
c) I feel like older people in retirement will be the most likely customers. Many people have a lot of their retirement savings tied up into the stock market, so when the market drops they can loose a lot of their savings. I feel like financial advisors could make a good profit helping these people in diversifying their assets.
d) I feel like this opportunity would be easily to exploit for people in the financial field. They are the ones with the knowledge and resources to exploit this, but it would be very difficult for someone not in this field to be able to navigate the different investment options.
e) I saw this opportunity because I am currently a finance major, and like to stay up to date on things happening in this field.
Economic Trend Two: “Mills Are Being Closed by National Economic Trends, Not Environmental Regulations”
a) https://www.counterpunch.org/2020/01/17/mills-are-being-closed-by-national-economic-trends-not-environmental-regulations/
b) This economic trend shows that the lumber industry is moving to southeast region, due to the climate and growing condition for trees to be better. Lumber mills across the United States are now closing, as mills across the south east region of the US keep opening. This shows me that an opportunity exists for companies who make equipment for these newly built mills. This equipment ranges from anything such as the saws used to cut the trees, to the semi-trucks and shipping industry used to transport the trees.
c) The most likely customer would be the companies building the new lumber mills. The article even stated the many of these companies that are moving are leaving their old and outdated equipment behind and investing in new equipment in the south east.
d) This opportunity would be difficult to exploit because you would have to make the right contacts in the lumber industry to even begin selling equipment for.
e) I found this opportunity because I like to read about sustainability, and the lumber industry is often featured due to unethical practices of deforestation. Companies that re moving to the south east have the potential to benefit the environment, by farming their trees instead of getting them from forests.
Regulatory Opportunity One: “UK Financial Watchdog seeks Cryptocurrency Expert to Address EU Regulations”
a) https://cointelegraph.com/news/uk-financial-watchdog-seeks-cryptocurrency-expert-to-address-eu-regulations
b) This regulatory trend shows that countries are cracking down on cryptocurrencies, due to their popular use for money laundering and illegal trade. These new regulations are forcing companies to hire people with knowledge in cryptocurrency, to help guide companies around the regulations.
c) Most likely customers would be companies and government divisions such as the FCA, due to them needing to hire crypto experts to help enforce regulations, and ensure that they are abiding by them.
d) This opportunity would be difficult to exploit unless you have a deep knowledge on crypto currency. Those with this knowledge could probably easily exploit this by offering consulting services.
e) I found this opportunity because I am a finance major, and I look closely into cryptocurrency as a form of investment. Just like stocks cryptocurrency fluctuates in its price, and buying when it is low and selling when it is high can result in great profits.
Regulation Opportunity Two: “The last straw: Gainesville ban takes effect”
a) https://www.alligator.org/news/the-last-straw-gainesville-ban-takes-effect/article_5c6bb62c-3354-11ea-85b7-63c47c871247.html
b) Gainesville joined the large list of cities banning plastic straws. This regulation bans businesses from using plastic straws and will give companies a $250 fine if found violating this regulation. This leads to the opportunity for companies selling paper straws, but more importantly gives the opportunity for people to invent better alternatives. Many people do not like paper straws so there is now a need for a good alternative to be used.
c) Most likely customer would be companies that use straws such as restaurants and also consumers who use these products in cities with these regulations.
d) This opportunity would be easy for some people to capitalize on such as selling stainless steel straws at local stores, but would be difficult to exploit for companies trying to invent new alternatives that do not currently exist.
e) I found this opportunity because I live in Gainesville, and hate using paper straws. I ordered a milk shake and was given a plastic straw, and it lasted like two sips before it started disintegrating.
a) https://www.forbes.com/sites/investor/2020/02/06/are-us-stocks-on-their-way-out/#7837467ea7a9
b) This economic trend suggests that US stocks may lose value in the future and other forms of investment may out perform the stock market in the future. US large-cap funds are at the highest risk for loosing value in the future. The This shows an opportunity exists for financial advisors to help clients navigate their investments, into looking into other places to invest. Some investors may be comfortable investing in the US stock market, but will need help with other investments once the stock market begins to drop, such as investing in foreign funds a small to mid-cap funds.
c) I feel like older people in retirement will be the most likely customers. Many people have a lot of their retirement savings tied up into the stock market, so when the market drops they can loose a lot of their savings. I feel like financial advisors could make a good profit helping these people in diversifying their assets.
d) I feel like this opportunity would be easily to exploit for people in the financial field. They are the ones with the knowledge and resources to exploit this, but it would be very difficult for someone not in this field to be able to navigate the different investment options.
e) I saw this opportunity because I am currently a finance major, and like to stay up to date on things happening in this field.
Economic Trend Two: “Mills Are Being Closed by National Economic Trends, Not Environmental Regulations”
a) https://www.counterpunch.org/2020/01/17/mills-are-being-closed-by-national-economic-trends-not-environmental-regulations/
b) This economic trend shows that the lumber industry is moving to southeast region, due to the climate and growing condition for trees to be better. Lumber mills across the United States are now closing, as mills across the south east region of the US keep opening. This shows me that an opportunity exists for companies who make equipment for these newly built mills. This equipment ranges from anything such as the saws used to cut the trees, to the semi-trucks and shipping industry used to transport the trees.
c) The most likely customer would be the companies building the new lumber mills. The article even stated the many of these companies that are moving are leaving their old and outdated equipment behind and investing in new equipment in the south east.
d) This opportunity would be difficult to exploit because you would have to make the right contacts in the lumber industry to even begin selling equipment for.
e) I found this opportunity because I like to read about sustainability, and the lumber industry is often featured due to unethical practices of deforestation. Companies that re moving to the south east have the potential to benefit the environment, by farming their trees instead of getting them from forests.
Regulatory Opportunity One: “UK Financial Watchdog seeks Cryptocurrency Expert to Address EU Regulations”
a) https://cointelegraph.com/news/uk-financial-watchdog-seeks-cryptocurrency-expert-to-address-eu-regulations
b) This regulatory trend shows that countries are cracking down on cryptocurrencies, due to their popular use for money laundering and illegal trade. These new regulations are forcing companies to hire people with knowledge in cryptocurrency, to help guide companies around the regulations.
c) Most likely customers would be companies and government divisions such as the FCA, due to them needing to hire crypto experts to help enforce regulations, and ensure that they are abiding by them.
d) This opportunity would be difficult to exploit unless you have a deep knowledge on crypto currency. Those with this knowledge could probably easily exploit this by offering consulting services.
e) I found this opportunity because I am a finance major, and I look closely into cryptocurrency as a form of investment. Just like stocks cryptocurrency fluctuates in its price, and buying when it is low and selling when it is high can result in great profits.
Regulation Opportunity Two: “The last straw: Gainesville ban takes effect”
a) https://www.alligator.org/news/the-last-straw-gainesville-ban-takes-effect/article_5c6bb62c-3354-11ea-85b7-63c47c871247.html
b) Gainesville joined the large list of cities banning plastic straws. This regulation bans businesses from using plastic straws and will give companies a $250 fine if found violating this regulation. This leads to the opportunity for companies selling paper straws, but more importantly gives the opportunity for people to invent better alternatives. Many people do not like paper straws so there is now a need for a good alternative to be used.
c) Most likely customer would be companies that use straws such as restaurants and also consumers who use these products in cities with these regulations.
d) This opportunity would be easy for some people to capitalize on such as selling stainless steel straws at local stores, but would be difficult to exploit for companies trying to invent new alternatives that do not currently exist.
e) I found this opportunity because I live in Gainesville, and hate using paper straws. I ordered a milk shake and was given a plastic straw, and it lasted like two sips before it started disintegrating.
Dear Matthew,
ReplyDeleteI am curious how an entrepreneur would tackle the opportunity of the economic trend suggesting hat US stocks may lose value in the future, and other forms of investment may outperform the stock market in the future. You state that this shows an opportunity exists for financial advisors to help clients navigate their investments into looking into other places to invest. So I wonder how you would personally offer this solution.
Hey Matthew!
ReplyDeleteI think you chose very interesting and out of the box trends for this topic. I wanted to focus on the last one. I like that the last one is local and the prospective solution is within reach. I also liked how you could personally relate to the problem. Things like European cryptocurrency is hard to relate to and hard to solve. But, I did see that you're a finance major so I think you just understand it a lot better than I do. I think your choices accurately represent the topics at hand. Great job!