Identifying Opportunities in Economic & Regulatory Trends

1.       The first opportunity is the stock market that has the DOW Jones Industrial Average over 26,000 points

a.       I found the information about the rising stock market on a newsletter called the Morning Brew.

b.       Since the market is rising at such a rapid pace there is potential room to make a profit as it goes higher, or to short the market and make money if it declines.

c.       The prototypical customer would be day traders or the heads of large trading companies.

d.       This opportunity would be relatively difficult for the average person to take advantage of without the licenses, or knowledge, to trade effectively on the stock market.

              I saw this opportunity because I am pursuing a career in the financial markets. My interests in this sector has led me to form a habit of keeping up with relevant financial news.

2.       A major economic opportunity right now is the market for cryptocurrencies and the ability to make money on it’s price swings.

a.       I found this information through the use of the app named Coinbase which tracks cryptocurrencies.

b.       There are huge price swings among the different cryptocurrencies in the market and by strategically buying and selling, there is a lot of money to make.

c.       The prototypical customer could be anyone from a trader on Wallstreet to a college student who has a few extra bucks to invest.

d.       The opportunity can get difficult for a lot of people to make money because of the trading fees that are associated with trading cryptos. If using large quantities there is the possibility of creating a mining rig which would cost $8k.

The reason that I saw this opportunity is because my friends are active investors in these things and they introduced me to the possibility. So essentially because of the people that I know.

3.       A huge regulatory change that is most likely going to take place in the recent months is an increase in the Federal Funds Rate.

a.       This information was made known to me because of the newsletter that I read called the Morning Brew. The chairwoman of the Fed has been removed by President Trump.

b.       This information yields an opportunity because with the rise of this rate, interest rates across the world will rise.

c.       The customer that would be likely to use this would be anybody using a bank or borrowing money in any facet.

d.       The opportunity is extremely difficult to cash in because you would need to be a bank or simply have the money to lend to others in excess.

I have seen this opportunity because I plan on working for a bank after college. Being interested in this world has led me to understand the monetary policies of the US and how they affect the economy.

4.       A huge regulatory change happening throughout the country is the legalization of marijuana on a state level.

a.       This is a huge social issue that is being discussed in all social circles across the country.

b.       This information is relevant because marijuana is a huge business that takes place already illegally. With it being legalized there could a lot more revenue coming from it.

c.       The most likely customer to use this would be millennials. They have grown up in a culture more accepting to pot and more likely to smoke it recreationally.

d.       The opportunity is relatively easy to do. However, there are a lot of regulations in this industry due to the fact that it has been illegal for so long.

I have seen this opportunity because I am an advocate for the medicinal use of marijuana and I keep up with relevant news on it’s progress.