Identifying Opportunities in Economic & Regulatory Trends
Economic:
Shortage of graphics cards around the
globe.
While
researching graphics cards for my PC build, I noticed a lot of high end ones
are hard to come by. The prototypical customer would be either a heavy PC gamer
or businesses who require high end computational power. Recently there has been
a shortage of high end graphics cards due to the rise of cryptocurrency mining.
Cryptocurrency is essentially a digital currency. It uses encryption methods in
order to regulate the generating of units of currency and the verification of
the transferring of funds among different individuals. When mining
cryptocurrency, it requires a lot computational powers. This means to be the
most effective when it comes to mining people tend to buy high end graphics
cards, which is the reason why there is such a shortage. This issue will cost a
lot of money to fix because of the cost it takes to make high end graphics
cards.
Need for more charging stations
While
driving on the highway and through the city I tend to notice the lack of
charging stations for electric cars. The prototypical customer would be a
person who owns an electric automobile. The automobile industry is trying to
lean towards electric cars and putting as many as they can out on the road in
2018. This is mainly because of Tesla and how successful they have been in the
electric automobile industry. There just isn’t enough charging stations around
the nation, especially in more rural than urban areas. Stated in the article,
there are only 16,300 publicly accessible charging stations in the US. The US
will need 100,000 to 200,000 charging stations in the future though to meet the
demand for electric automobiles. I feel this would be an expensive problem to
fix, but in the long run it will be worth the money.
Regulatory:
Mandatory paid sick-leave laws
A
lot of people tend to go to work straight throughout the entire year because
they can’t afford to take time off. I know this from personal experience
growing up with a single mom. A lot of people go to work when they are ill
because they know if they call in sick they won’t be getting paid. These are
examples of prototypical customers. The article talked about how more and more
states are mandating minimum paid sick leave hours for people working the
minimum 40 hours a week. I feel this is a good opportunity, and will increase
both the healthcare and insurance business since more and more people will be
going in for regular doctor visits and illnesses.
Tax policy changes
Every
day when you turn on the news you will likely hear something new about what is
going on in Washington. Recently Trump passed a new tax bill that changed income
tax brackets, corporate tax, child care tax, mortgage interest deduction, state
and local tax deductions and etc. The prototypical customer are both
corporations and everyday ultimate consumers. Some of the tax deductions might
indicate Americans will be able to spend more money in the market because they
can write more things off during tax season. Corporations having a lower
corporate tax rate might be a good enough incentive for companies to stay in
the states. A lot of people believe it is not enough and most corporations will
still stay oversees. These are very controversial topics among both parties,
which might negatively affect both the house and the market.
Hey Nick, I really liked your assignment post. I especially found interesting is that your interest in your PC lead yo to identify an opportunity in graphic cards and how hard they are to come by. I also liked that you wrote about the lack of charging stations and I feel that, that will be in an increasingly high demand as soon as the prices for these all electric cars, like Tesla go down. Overall, I really enjoyed reading about all the opportunities, both economic and regulatory, and what you had to day about them. Great Job!
ReplyDeleteHi Nick. I really enjoyed reading the articles you selected to identify opportunities in economic and regulatory trends. Your regulatory trend article about mandatory paid sick-leave laws was really interesting and quite sad, to be honest. I agree it is a good opportunity and you did a good job pointing out how business will increase in the insurance and healthcare fields. I also think it would be nice for people to stay home when they are sick to prevent sickness from spreading. Nice job!
ReplyDeleteHey Nick, the topics you chose were very cool! They’re definitely different from other articles people chose, but they’re interesting to read, for me at least. I think all of your points on each article were accurate, and actually pretty insightful. I believe your correct on each point being an opportunity, for example with the sick leave in the Mandatory paid sick-leave laws. These were good reads so thank you!
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