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.
Hi Benjamin,
ReplyDeleteYour 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.
Hi Benjamin,
ReplyDeleteI 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!
Hello Benjamin,
ReplyDeleteI 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.