Agatha's Blog

Friday, January 25, 2019

Identifying Opportunities in Economic and Regulatory Trends

Economic: “Apple Shares Stumble, but Company Keeps Trillion-Dollar Valuation”
Source: https://www.wsj.com/articles/apples-stock-drop-threatens-trillion-dollar-valuation-1541165564

I believe an opportunity exists here because Apple is a major corporation. By their stock price dropping 6.6% to $207.48, they almost lost their trillion dollar stock valuation. They also removed about 100 points from the Dow Jones Industrial Average. Since Apple is such a big corporation, their stock decrease has contributed to the decline in the market. The Prototypical customer is the CEO and other employees of Apple, and everyone who buys and owns stock with Apple. I do not think this will be easy to exploit because Apple the companies valuation could still change when it updates the share count. Also, the only people who can solve this are Apple's top management. I saw this opportunity because Apple plays such a large role in the market. I became even more interested when I found out that if Apple's stock price falling would have an impact on the overall market.

Economic: "The government shutdown could cause a disaster for the US economy if Trump follows through on his threat to continue the fight for 'months'"
Source: https://www.businessinsider.com/government-shutdown-gdp-consumer-spending-us-economic-impact-2019-1

I believe there is an opportunity because according to the article if the government shutdown lasts for months, it could have major repercussions on the US economy causing it to shrink. This could cause many problems for Americans such as a decline in business and consumer sentiment or US equity markets. Federal employees and people who rely on government programs are also negatively affected if the shutdown continues. The prototypical customers are all federal employees, everyone who relies on government programs, working Americans, and Americans who are business owners. 
I think this opportunity would be easy to exploit because the solution is very simple. Government officials simply need to reopen the government. I found this opportunity interesting because it is an issue that is affecting so many Americans and can have a major impact on the future of the economy if not resolved quickly enough.

Regulatory: "Nuclear Power Regulators Scale Back Draft Safety Rule"
Source: https://www.wsj.com/articles/nuclear-power-regulators-scale-back-draft-safety-rule-11548378555?mod=searchresults&page=1&pos=8

I believe there is an opportunity because some government officials believe that nuclear power plants should have tougher safety rules to plan for natural disasters. However, the final vote ended up removing the language of more safety precautions. However, if a natural disaster was to occur and the plant could not handle it, it could cause a nuclear disaster. The prototypical customers would be anyone working for the plant, all of the top management and investor in the plant, and people who live in the areas surrounding the plant. I do not think this is easy to exploit because this sort of regulation requires a lot of deliberation and planning. It also requires a lot of funding for the 98 nuclear plants in the US. I found this opportunity because it would have a major impact on the nuclear plants in the US since there are so many. Officials voted for what they thought was the best decision however if a major natural disaster happens they may need to deal with major consequences.

Regulatory: "House Passes Three-Week Spending Bill to Reopen Government"
Source: https://www.wsj.com/articles/trump-considering-agreeing-to-sign-three-week-spending-bill-as-early-as-friday-11548439078?mod=hp_lead_pos1

I believe there is an opportunity because the President still has an unmet need of funding for the wall and there is always the chance that it could get shut down again after the 3 weeks are over, or the president would use emergency declaration funding. The prototypical customers are the President, people who work in Congress and Senate, and all other federal employees such as TSA and post office workers. This opportunity is not easy to exploit because only the President has the ability to shut down and reopen the government. Also in terms of negotiations and bills, only select people have that right and authority. I found this opportunity because, based on the events happening today, this could decide whether the government's further actions will be productive or damaging. 




Posted by Agatha Robinson at 4:40 PM
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Labels: Assignment 6A

2 comments:

  1. KaitlynJanuary 27, 2019 at 10:50 AM

    Hi Agatha! I like how varied your economic and regulatory trends are, and I also agree about the opportunity found within the government shutdown. It affects more than just the people who work for the government. You’re really good at identifying the prototypical customer, and I can see how knowledgeable you are about each of these issues.

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  2. Jessi.GargiuloENT3003January 27, 2019 at 3:46 PM


    Hey Agatha, your economic and regulatory trends were very interesting and well organized also I really found your economic trend with apple to be very interesting. Despite their stumble in the stock market, apple still holds there trillion-dollar valuation. This is a opportunity because apple is very distinct and plays a large role in the market.

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Agatha Robinson
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