Friday, May 31, 2019

6A – Identifying Opportunities in Economic & Regulatory Trends

Economic Opportunity: The Dow falls 618 points
Article of Trend: Dow ends the day down 618 points after dramatic day of losses
Opportunity Reasoning: I believe an opportunity exists because this is only happening after retaliatory trade tariffs were imposed by China on the US. Trade negotiations will likely lead to the dropping of the tariffs and stock prices will rise again.
Prototypical Customer: Stock Investors
Difficulty of Exploitation of Opportunity: Exploiting it would be mildly difficult because it would involve either being loaned money or convincing others to let you manage their money.
Why Did You See the Opportunity: I saw this opportunity because stock prices and specifically the Dow Jones index are one of the primary markers of economic health reported on by the news.

Economic Opportunity: Home prices rise faster than average incomes
Article of Trend: Young homebuyers scramble as prices rise faster than incomes
Opportunity Reasoning: There is a greater demand for housing than the supply especially in urban areas.
Prototypical Customer: People living in or wanting to live in desirable urban or suburban areas
Difficulty of Exploitation of Opportunity: Exploiting the opportunity would be mildly difficult due to the financial leverage, housing analysis, and proximity to the desirable urban area needed to exploit it
Why Did You See the Opportunity: I saw this opportunity because home prices are one of the most watched economic trends in american news media due to everyone needing a home.

Regulatory Opportunity: Illinois is likely to legalize weed
Article of Trend: Illinois likely to become 11th state to legalize recreational marijuana
Opportunity Reasoning: I believe the opportunity exists here because past examples of American states legalizing weed have lead to a booming market of cannabis sales.
Prototypical Customer: 21-40 year old Illinois residents
Difficulty of Exploitation of Opportunity: It wouldn't be very difficult to exploit. Cannabis grows readily and would be a good cash crop to grow.
Why Did You See the Opportunity: I saw this opportunity because I pay attention to the slow worldwide legalization of marijuana.

Regulatory Opportunity: The FCC wants to ban robocalls
Article of Trend: FCC Wants Phone Companies To Start Blocking Robocalls By Default
Opportunity Reasoning: I believe the opportunity exist because there is already logistics chains in place of businesses depending on robocalls for sales.
Prototypical Customer: Companies using robocalls for sales
Difficulty of Exploitation of Opportunity: I believe this would be very difficult to exploit since there are already call centers in place and you would have to compete with them.
Why Did You See the Opportunity: I saw this opportunity because I am an avid reader of NPR.

3 comments:

  1. Hi Cesar,

    I posted about the same regulatory trend regarding legalizing marijuana in Illinois.
    I hope the FCC’s proposal is approved because I receive a lot of robocalls, and I’m sure everyone else does too around tax season. I believe most of them are scams which is why I’d be okay with having the choice to opt out. Some robocalls are good, like appointment reminders and textbook rental reminders from Chegg. These messages can also be sent by email too, though.

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  2. Cesar,
    I enjoyed reading your listed opportunities. I think you have some great observations made, especially in number 1. I think looking at the stocks in this way may lead to a great opportunity. I also like how you mentioned Illinois is likely to legalize weed. I also mentioned the growing marijuana market and how it will likely bring opportunities.

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  3. Cesar,
    Great job analyzing each article. Your second article was interesting to me. I used an article on a similar issue, however mine was about the market opening up due to lower interest rates. Your article laid out income vs housing prices while mine discussed interest rates. These are two big factors that go into buying a home and the do affect one another. Interesting read. Great job!

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