-Economic Trends
1. Fed interest rates to stop being cut.
a) Source: https://www.cnn.com/2019/09/17/investing/fed-rate-cut-expectations/index.html
b) I believe that there is an opportunity here, as economists are making strong predictions that interest rates will stop declining, and likely stay stagnant, as opposed to what they have been doing lately. Due to international factors such as the attack on the Saudi Arabian oil facilities and the United States negotiations with China, it is causing instability in the economy. This is causing economists to believe that the Fed will stop lowering interest rates.
c) The prototypical customer would be businesses and individuals that are needing to borrow money.
d) Exploiting could be difficult as no one knows what might happen next to cause more instability or to reinstate stability in the US economy.
e) I saw this opportunity because of my interest in the banking and financial industry, as well as in economics.
2. Gas Prices Rising.
a) Source: https://www.foxbusiness.com/economy/us-gas-prices-spike-after-drone-attacks-on-saudi-oil-plants
b) I believe there is an opportunity here as there is evidence of a spike in gas prices. Since the attack on the Saudi Arabian oil facilities, there has been a sudden increase in gas prices in the United States. These events cause instability in the economy as a whole, but especially in the oil and gas industry. This instability will cause the price increases.
c) The prototypical customer will be any vehicle drivers who have to put gas in their cars, as well as business who own company cars for their employees.
d) Exploiting could be difficult as no one knows what might happen next, and what other situations might arise out of no where, as this one did.
e) I saw this opportunity because, as a driver I purchase gas and this effects me personally in a way.
Regulatory Changes
1. Smoking age raised to 21 in Texas
a) Source: https://www.dallasnews.com/news/politics/2019/08/30/texas-just-raised-the-smoking-age-to-21-who-is-exempt-and-what-are-the-penalties/
b) This opportunity exists as the congress in Texas has passed laws raising the legal age to smoke to 21. This could help companies that make products helping people to quit, as now hopefully those people under 21 that had started smoking, will be quitting.
c) The prototypical customer would be smokers.
d) Could be easy to exploit as the law has already be changed, and is very unlikely to change back anytime soon.
e) This opportunity caught my eye as I have family that struggled with smoking addictions, and it is an issue that is important to me.
2. No more regulations allowed on lemonade stands in Texas
a) Source: https://www.texastribune.org/2019/06/10/texas-greg-abbott-signs-bill-declaring-childrens-lemonade-stands-legal/
b) This opportunity exists as Governor Abbott in Texas has signed in a ban on regulations pertaining to kids selling non alcoholic beverages on private property. This will help the young entrepreneurs as they get their first experience in business, selling lemonade on the street in their neighborhood. This provides that opportunity to kids.
c) The prototypical customer is those who love lemonade and supporting the young entrepreneurs in their communities.
d) Possibly easy to exploit. The law is in place.
e) This opportunity caught my eye as this is something that I always wanted to do as a child. This is a great opportunity for kids to learn about business.
Hello Robert, great post. I like how you kept it short and simple but with enough relevant information for each article. I also thought you had great choices for each trend as they were all very informative. Like your other posts, it was well written and easy to follow! Good job with this assignment. Looking forward to reading more from you.
ReplyDeleteHey there Robert, it's interesting to see how the smoking age has been increased in Texas. It has also been increased in another state, I just don't remember exactly which one it is. I feel that the increase in age will be ineffective, mainly because it will probably just cause an underground trade. Somebody of age buys cigarettes for $5, then sells them to somebody under 21 for $7. Definitely gives opportunity for illegal trade. I also saw how there are no more regulations on lemonade stands. I like that there is finally some learning opportunities for young children to get into business and entrepreneurship.
ReplyDeleteHey Robert,
ReplyDeleteI really enjoyed reading this blog post. You did a really great job including interesting topics and explaining each one. The topic that stood out to me is the smoking age being raised to 21 in Texas. I think that increasing the smoking age is a good effort to prevent underage kids from smoking. But I think that it will take a lot more then this to make a change.