Tuesday, February 4, 2020

Identifying Opportunities in Economic & Regulatory Trends


Economic Trends:
1) Invest is tech stocks: As someone who follows the U.S. stock market closely, it is very obvious that we are currently in a Bull market with tech stocks leading the way. While there has been a recent hit to the market because of the outbreak of the Coronavirus in China, Tech stocks are still flourishing, especially during this earnings season. Companies like Apple, Tesla and Amazon are some of the most noteworthy examples of this trend. Seeing the success of these companies during earnings reports creates an opportunity to invest in similar thriving tech stocks that are anticipated to do well this upcoming year. In this opportunity, the customer can be yourself or you can charge a fee to people who want you to trade for them. For certain people, this opportunity will be easy if they have a background or understanding of finance. While it is complex to learn, the basics are simple and most people who put effort into learning and understanding how the stock market works are capable of making educated decisions and conservatively growing their money.
2) Create a manufacturing facility for small products sold in U.S. to rival Chinese factories and companies like Alibaba: Given the current political climate with China as well as the issue they are facing right now with Coronavirus, trade between them and the U.S. is sketchy. Tariffs have been imposed on trade with China that significantly increases the prices of outsourcing to their factories for cheaper production. Additionally, U.S. businesses appear to be keener on working with local manufacturers and consumers seem eager to purchase items that have been made in the U.S. This is a relatively difficult opportunity to exploit because it takes a lot of assets and a lot of time to set up and build a client base. However, it is certainly possible.

Regulatory Changes:
1) Creating a product for people 18-20 that can no longer purchase vape devices because of the federal law increasing the vape age to 21. I found this when it was news in the New York Times ( https://www.nytimes.com/2019/12/19/health/cigarette-sales-age-21.html ) that a federal law was passed banning the sale of e-cigarettes and tobacco federally to anyone under the age of 21. Considering that 18,19 and 20-year-old individuals now have been restricted from purchasing they formerly spent sizable amounts of money on, it is obvious they have disposable income that they are looking for something to replace or satisfy their desire to vape. While it is no easy task developing a chemically backed product that will be FDA approved and favored by 18-20 year old’s quickly, it may not be as difficult as you would think. CBD’s recent gain in popularity may be increased by this federal law significantly and could be utilized by people looking to reach the market of individuals who are no longer permitted to vape.
2) FDA approved a drug that cures peanut allergies. Create a peanut based food product to sell specifically to recently cured people who suffered from a peanut allergy. I learned about this when I saw on the news that the FDA passed a drug that cures people with the allergy
 ( https://www.fda.gov/news-events/press-announcements/fda-approves-first-drug-treatment-peanut-allergy-children ). There is an opportunity to create new peanut butter products to support the expected increase in volume in the peanut butter market now that there are significantly more potential customers in the peanut butter market. This is difficult because there are already many brands sending peanut products, however, by advertising to recently cured people with peanut allergies it may be easier to reach that market quickly before other companies do.




3 comments:

  1. Hi Benjamin,
    Your economic trends are relevant and informed. The political reasons you gave were supporting the investment and manufacturing opportunities you listed. The opportunities for the regulatory changes were also applicable. You described the legal changes that have occurred recently and managed to tie them into an opportunity that has not yet been profited from due to its new state.

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  2. Hi Benjamin,
    I really enjoyed reading your post! I found it interesting how one of your regulatory opportunities was to create an alternative for vaping for people ranging from 18-20. I would 100% support this idea, as for someone who knows vapors finding something else they would put their money towards would most definitely be another opportunity.With that being said I think you had a great post overall!

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  3. Hello Benjamin,
    I find your opportunities as a result of regulatory changes to be interesting, and it would be interesting to see how the market ends up taking advantage of them. The one that I resonated with the most was the one that dealt with changing the legal age to buy all tobacco products being 21. This directly affects our age group, as many teens got hooked on e-cigarettes as 18 year olds, but 2 years later and they are no longer permitted to buy since there is not grandfather clause. I found your idea as CBD for a replacement to be very interesting as well.

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