Friday, February 2, 2018

6A - Identifying Opportunities in Economic and Regulatory Trends

Regulatory Trends:


In 2018, Many states are increasing minimum wage.

With many states increasing the minimum wage floor it creates an opportunity for many Americans that work Low to Middle skilled jobs to increase their revenue and climb a “ladder” for quality of life purposes. This will allow a large portion of Americans to get out of poverty and continue to pursue the American Dream. The prototypical customer in this scenario would be the large quantity of citizens in America that create their living from low to middle skilled labor. This opportunity has two sides to it. For the employers who are required to shell out more money for their employees it requires more efficient use of revenue. However, for the employees, it makes life a little easier.

Why’d I see it?:
I personally work a job for minimum wage and with this experience I was able to empathize with those who would be affected by a wage increase.


Funding for Healthcare diminishing raises cost of premiums for middle class Americans.

President Trump is beginning to cut off subsidization for Insurance Providers in an attempt to destabilize the Affordable Healthcare Act. I believe that this will create an opportunity because it will increase the premiums that Americans have to pay to their Healthcare providers because the cost to provide the Healthcare will increase as they are no longer receiving money from the Federal Government. This would largely affect middle class Americans and those who have Medicare and Medicaid. This is a very difficult situation in general, let alone an opportunity to exploit because of the large amount of people that will become uninsured due to an inability to pay for it.

Why’d I see it?:
My parents always watched the nightly news while I was growing up so I became familiar with keeping up with changes in the Healthcare market.


Economic Trends:


Bitcoin Price down.

Bitcoin’s price has recently gone below $9000 for the first time since November. I believe this creates an opportunity for new investors that are looking for a time to get into the market at a low point and try to make some nice investment gains. This would be an effective opportunity for investors in general and those interested in cryptocurrency in general. This is a tough call because while the situation would be perfect for a “buy low, sell high” it’s not guaranteed at all to go back up and investors could certainly lose money.

Why’d I see it?:
My best friend is highly interested in Bitcoin investment and Cryptocurrency in general. He often tells me information about the way the market is leaning and about his own personal investments.


Electric Car Charging Stations.


With the increase in sustainable energy endeavors electric car popularity is increasing rapidly. Especially with Elon Musk’s Tesla car models being so popular due to their classy look and undeniable efficiency. This increase in electric car popularity is also causing in increase in demand for charging stations to increase the efficiency of using these cars. The prototypical customer for this opportunity would likely be the owners of many businesses as investing in charging stations could increase popularity of their location to customers using electric transportation. This is an incredibly easy opportunity to exploit as it would only require investing in a charging station.

Why’d I see it?:
My dad has been looking into purchasing a Tesla since they first started up and often talks to me about the new models they come out with.

 




2 comments:

  1. I love both your economic trend opportunities. I myself have invested into bitcoin, and the recent price drop has created a lot of buzz and might entice a lot of new people to invest into it as well. Again, for the same hopes you described - Buy low Sell high. With the increasing demand for charging station, I agree with you that business owners will want them in their parking lots. This will attract those with electric vehicles to come into the store. And if they are Tesla owners, then they got money to spend.

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  2. Hey Matthew, I believe that your last economic trend opportunity is very important because there are so many more electric cars driving around. I also know many people who have been bugged by the lack of electric car charging stations. I believe that many gas stations should also include a charging spot for these types of cars.

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