Identifying Opportunities in Economic & Regulatory Trends

Economic Trend - Fed Leaves Interest Rates Unchanged.

Source: https://www.nytimes.com/2020/01/29/business/economy/fed-interest-rates-decision.html

·      This opportunity is related to the economic conditions that result from lower interest rates. Maintaining these low rates has been consistent with recent fed policy, and according to the article, “the central bank does not plan to move policy in either direction unless something fundamentally shifts.”

·      I believe this opportunity creates two potential customers. On one end, consumers will have more purchasing power because they are willing to borrow more to make larger purchases, which will increase demand for many goods and services. On the other end, it provides an opportunity for financial institutions to lend more and for producers to sell more.

·      I think this opportunity is relatively easy to exploit; in fact, I believe these results are just a natural economic reaction under low-interest rate conditions. I don’t think it would require any “effort” to make these come into fruition, it would happen easily.

·      I think I saw this opportunity because I work in finance, and I’m constantly hearing discussions about this. I’m by no means an expert on the matter, but I think I’m a bit more likely to notice it because of my job.

Economic Trend - China Cuts Tariffs on $75 Billion in U.S. Goods. That Was the Easy Part.

Source: https://www.nytimes.com/2020/02/06/business/china-trade-tariffs-coronavirus.html

·      This potential opportunity comes not only from the $75 Billion tariffs that China is but the plan that this should lead to the Chinese committing to buy $200 billion in good from the United States over the next two years.

·      This opportunity would create several potential customers or beneficiaries. First and foremost, China agreeing to cut tariffs on $75 billion in U.S goods would lead to higher exports from the U.S. Furthermore, the $200 billion that they are agreeing to commit, should provide even more opportunities for U.S exporters.

·      As simple as it may sound at this point, I don’t believe this opportunity is easy to exploit. It seems like trade deals between the U.S and China have been going back and forth for a while now. Even though things are looking up at this point, it’s very possible for one side or the other to do something that will result in another halt in the process.  

·      I think I saw this as an opportunity because I try to stay informed with what’s going on in business, politics and the world economy. However, just like my previous example, I’m by no means an expert on U.S commercial policy. I just think I have more of an interest since I’m always looking out for updates.

Regulatory change - Surprise for New York Renters: No More Broker Fees.

Source: https://www.nytimes.com/2020/02/05/nyregion/nyc-landlord-rental-broker-fees.html

·      This opportunity exists because of the regulation passed by the state of NY. It seems like this is going to change the process of renting, which according to the article, was mainly controlled by the brokers.

·      The customers in this opportunity would remain the same, the renters and landlords. I think there’s still an opportunity for a service or technology to help arrange the agreement between landlord and potential renter without being a traditional broker.

·      I don’t think this would necessarily be easy to exploit in the sense that finding a replacement will be challenging. However, it does seem like the opportunity to fill that void is clearly there, the challenge is founding out how. Maybe an app that makes the process seamless for both parties?

·      I think I saw this opportunity because of a recent YouTube video that I watched about the creators of a technology called Lisa. It’s an AI-driven bot that automates responses for clients interested in renting properties. It then books the appointments for the leasing agents to show the properties, making it easier for the agents to focus on the showing, and not spending too much time on going back and forth with potential clients.

Regulatory change - The SECURE Act is changing retirement — here are the most important things to know.

Source: https://www.marketwatch.com/story/with-president-trumps-signature-the-secure-act-is-passed-here-are-the-most-important-things-to-know-2019-12-21

·      This opportunity exists because the U.S government passed these regulations to make several changes surrounding retirement plans. These changes are going to impact participants, they type of investments available in these plans, and rules about withdrawals.

·      The potential customers, in this case, would be the participants in these retirement plans and the companies that offer them. This would open up the opportunities for financial services companies that provide these types of services.

·      I don’t think this would be very difficult to exploit. In this case, the need already exists and is being met. This regulation would just open more opportunities in the same field.

·      I noticed this opportunity because of what I do for a living. I work in financial services, specifically dealing with employer-sponsored retirement plans, so this was something that impacted me directly.