Identifying Opportunities in Economic and Regulatory Trends
Identifying Opportunities in Economic & Regulatory Trends
Opportunity #1 Economic: Investors and the Government Shut Down
https://money.usnews.com/investing/stock-market-news/articles/2019-01-18/3-tips-for-investors-in-a-government-shutdown
With the government shut down we see some investors are hesitant to invest. While people are not getting paid they are not making purchases. I think there is an opportunity for some investors since other investors are scared to invest and potentially selling off. This could make for a relatively easy potential for some investors to go ahead and invest in the market while prices are low, and inventory is high.
The article states, “try to use a shutdown to your advantage. If a sector or company is likely to be affected, the market often anticipates it, building in the volatility of a shutdown before it could occur, McGuire says. Investors could use any temporary volatility or sell-offs as an opportunity to pick up quality stocks at a value price”.
To me this shows that there is a potential advantage for investors to be able to get into the market. I found this as an opportunity because while the shut down certainly can have adverse impact if you look at what advantages it could have and who would receive the advantage you can see how this could work as an opportunity. In the past I have seen real estate markets drop and while this was a huge downfall for the owners of the houses it was a huge advantage for investors. Investors were able to pick up houses for cheap and be able to resell or rent them. So, in a crisis market investor have an opportunity to turn this into their advantage.
Opportunity #2 Economic: Employment rates continue to rise.
https://www.thebalance.com/us-economic-outlook-3305669
According to the Bureau of Labor Statistics employment rates are on the move and expected to continue to rise. The largest areas seeing a rise are in healthcare, personal care and construction. Again, I see an opportunity due to the real estate market. I think with more employment in construction this allows for building of more homes. Also, with employment rising I see how this is an opportunity for those that would not have otherwise been able to purchase a home to more readily afford a home. I think this is an opportunity for people who wish to sell their homes, investors and potentially people who want to purchase a home
I saw this as an opportunity since the job market usually directly correlates with the housing market. I recall the recession when so many people were losing their jobs and their homes at the same time. In a different market now, individuals are gaining employment and therefore have a better opportunity to purchase home. I think my background in real estate helped me find this as an opportunity.
Opportunity # 3 Regulatory: Prohibition of Plastic Carryout Bags and Straws
https://www.flsenate.gov/Session/Bill/2019/00502
The Florida senate is trying to pass a law to prohibit the use of plastic bags or straws to be allowed for use in stores and restaurants. I think there would be an opportunity for different types of bag or straw companies at this point. If stores are banned from using plastic bags and straws, they would be forced to purchase more environmentally safe containers. This could potentially be an opportunity for a paper company or someone who sold canvas bags in bulk. I think the customer would be the stores who had to switch from plastic bags, restaurants who had to switch to paper straws or potentially consumers who choose to buy their own canvas bags for groceries.
I saw this as an opportunity since I live at the beach took oceanography in the past learning the problems with plastic pollution. It is a problem for sea life since plastic is the only thing that doesn’t disintegrate for billions of years and often sea turtles mistake plastic bags for jellyfish and eat them only to suffocate. Since I have been aware of this it has made me think of alternatives to using plastic. I know California passed a law banning plastic and noticed that some restaurants were forced to switch over to paper straws.
Opportunity #4 Regulatory: Vegetable Gardens; Prohibits local governments from regulating vegetable gardens on residential properties except as otherwise provided by law; specifies that such local regulations are void & unenforceable.
Prohibiting regulations on vegetable gardens could be an opportunity for gardening centers. If there are no regulations on what vegetables people can grow in their own garden this would give gardening centers a chance to expand their products and market to potential individuals that would like to grow items that they may not have had the chance to in the past.
I saw this as an opportunity since if you take away the restrictions on something you open a market for more varieties of what can be sold, marketed and manufactured. I found this as an opportunity from knowing individuals that may would like to grow certain items in their garden but may not have the opportunity because of certain restriction. I also had a friend who had a greenhouse in the past and I really wasn’t sure of restrictions that could occur, so I found this as an interesting way to find an opportunity.
You found some great opportunities to discuss about economic and regulatory trends. I thought the article you found about investing was a good one because it is true. After the market crashing down in December, many investors are nervous to invest. I also wrote about the employment rate. My article discussed how the unemployment rate has continued to drop over the past few years and how the government believes it will even drop more with potential infrastructure jobs coming in the future.
ReplyDeleteI am dismayed that any authority, local or regional, would instate regulations against household gardening. I'm a believer in "power of the many" -- the more families that can grow even a little of their own food, the more flexibility and survivability power they have at the tip of their fingers. In World War 1, the War Garden Commission encouraged everyone to grow a "liberty garden". Even being somewhat food self- sufficient made surviving that much easier, and it freed up resources to help fight the war. Beyond that, I agree, there are many opportunities to create businesses to serve gardeners.
ReplyDeleteHey Victoria, I specifically like the last article you mentioned because it is a problem that has always been of concern to me. It's good to know that the government can’t prohibit one from growing certain vegetation on their land, after all I think that this decision up to the discretion of the owner not the government. I like how you provided you analysis to this issue as well but I wish you went more in depth and talked more because I really enjoy your point of view.
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