6A- opportunities in economic and regulatory trends

Assignment 6A- Identifying Opportunities in Economic & Regulatory Trends

• Economic Trend: Safety for Investors
• Source: https://www.nytimes.com/2019/01/11/business/market-swoon-investors-seek-safety.html
• I believe that this source identifies an economic opportunity that exists with the current volatility of the economy.  Over the past two years, the economy has been constantly thriving.  However, within the past few months, the economy has entered a state where its stability is being questioned as it is "slowing but probably still growing."  Because of this recent changing in the economic trends, many investors are worried about the safety regarding their stocks and investments.  
• The prototypical customer of this opportunity are investors who are willing to put their money in stable investments.  Investors who are worried of a recession would be the best customer for this opportunity because the threats of a recession would force these investors to avoid stocks.  I believe that this opportunity would be difficult to exploit as there is not one simple answer but rather there can be numerous answers to fix this problem.
• I found an opportunity from the information I read because it is explaining the security that investors are desiring for their finances.  This desire represents a need that investors want to have and are not currently receiving.  Additionally, I found this opportunity from this information because I have been aware of the recent economic fluctuations regarding the stock market which makes investors overly cautious about a future economic downturn.
• Economic Trend: The value of particular funds
• Source: https://www.nytimes.com/2019/01/11/business/inverse-exchange-traded-funds.html
• I believe that this source identifies an economic opportunity that exists for investors who want to make money quickly and fall into the trap of dangerous fund options.  With the economy's current fluctuation in the stock market, many investors have become aware of inverse exchange-traded funds.  These funds are extremely dangerous to the individual investor because they offer a value that moves in the opposite direction of their benchmarks.  Therefore, this enticement provides an extremely tricky situation that involves pertinent knowledge on all of the potential consequences of reverse E.T.F.s. 
• The prototypical customer of this opportunity would be individual investors who want to invest in the short term without putting themselves at risk for disaster.  As inverse E.T.F.s are "only good for a day at a time," these do-it-themself investors need a short-term option that offers security.  I believe that this opportunity would be very difficult to exploit as there are so many investors who believe that what they are doing regarding their funds is the right thing to do and they don't want to listen to anyone who tells them that they are wrong.  Additionally, this opportunity would be difficult to exploit because many people do not understand the truth about certain types of funds as their danger remains hidden until it is too late.  
• I found an opportunity from the information provided because the recent status of the American economy has offered instability regarding the stock market and numerous funds.  With the economy's current volatility, people (especially high-risk investors) are looking for ways to make money fast before the stock market falls again.  There should be an option for investors that is not dangerous but rather provides security within their financial wants and needs.  
• Regulatory Change: Tax cuts affecting all levels of the American society
• Source: https://www.cnbc.com/2018/09/28/house-passes-gop-bill-to-make-new-tax-cuts-permanent.html 
• I think this opportunity exists because of the permanent tax cuts bill that the House passed.  With permanent tax cuts, individuals and small-businesses would have a greater ability to produce more of anything as they have more money to spend on their production rather than on paying taxes.  However, these people should not be the only ones who benefit from the tax cuts- anyone at any level of society should be able to benefit.
• The prototypical customer would be people who are in the lower tax brackets and therefore do not receive a tax break.  Since these people may not earn enough to earn a large tax break, there could be another incentive that would make them work harder to generate more money so that they are able to reap the benefits of regulatory changes such as tax breaks.  By cutting their taxes, people can more easily produce greater amounts of any product or service which will increase the economy's overall productivity and gross domestic product.  
• I think that this opportunity would be simple to exploit because no individual nor business wants to pay for taxes.  Therefore, with this regulatory change of a cut in their taxes, individuals and businesses would definitely take this opportunity to thrive. 
• I recognized this opportunity because as I grew up in a family business, I witnessed how much time and effort goes into our daily work and even though we work so hard to accomplish everything, a large portion of our earnings went to taxes.  Therefore, with a cut in taxes, small businesses can spend that tax money on what is important such as high-quality employees.  However, I have also witnessed the frustration that other individuals who do not make enough money experience as they are not able to reap any benefits even though they work so hard. 
• Regulatory Change: Nutrition standards of meals for children
• Source: https://www.fns.usda.gov/school-meals/nutrition-standards-school-meals
• I think this opportunity exists not only because of the increasing obesity rate of American children but also because of the increased health complications of American children.   Although nutrition changes have occurred, there needs to be a change that not only reaches children while they are at school, but anywhere in society such as at home, at the mall, or at extracurriculars.  Parents want their children to be healthy; however, school meals do not always offer the most nutrient filled meal.  Therefore, this change in nutrition standards for meals will please parents and adults as their children are being fed properly at school. This unmet need would change vending machines from unhealthy bags of chips and cookies to nutritional foods that still attract children's eyes.  
• The prototypical customer would be schools, especially elementary and middle schools, who want to provide healthy meals for their students as well as any store that has a vending machine in it.  As this regulatory change suggests, the new nutrition standards for school meals agree with the latest nutritional science research. Therefore, schools and places with vending machines will want to implement this new regulatory change as it will benefit children everywhere. 
• I think that this opportunity will be easy to implement as adults want children to eat healthy and be healthy.  By implementing this change, we will be providing children with the necessary nutrients their bodies need to stay healthy no matter where they are.  
• I recognized this opportunity because there are thousands of unhealthy children in America who suffer because of the foods they eat.  However, by implementing healthy meal opportunities at any given moment and place, these children will be changing their diet for the good and will consequentially feel better.