6A – IDENTIFYING OPPORTUNITIES IN ECONOMIC & REGULATORY TRENDS
1) Economic Trend: Trump Seeks New Fed Board Seats
Source: Wall Street Journal - https://www.wsj.com/articles/white-house-adviser-says-fed-board-nominees-should-support-easy-money-policies-11548375931
Economic Opportunity/Trend: I think this creates an opportunity for qualified Economist who want to fight to have a seat in the Federal Reserve Board. As President Donald Trump is seeking to fill upcoming two vacancies in the board. President Trump has been known that in the previous months has highly disagreed with the current Fed because of his constant rise in interest rates.
Interest Group: Again, I believe highly qualified Economist that can be to President Trump liking would be ideal. Even though the current Fed was appointed by Trump, they have strongly disagreed on interest rates increase. So the upcoming seats I am sure must be someone close to the president that can have similar economic ideologies.
Exploitability: The interest rates being rates are not a necessarily good thing for people who want to invest so we might see some retreat from investors and are more careful with the amount of money being spent.
Why: This is an opportunity because people interested in filling up this position should start forming a strategy, also when these people are appointed we will also know they are more of republican liking style of economy. More economic freedom for the people.
2) Economic Trend: Ken Griffin Purchases Americas Most Expensive Real Estate
Source: Wall Street Journal - https://www.wsj.com/articles/billionaire-ken-griffin-buys-americas-most-expensive-home-for-238-million-11548271301?mod=trending_now_1
Economic Opportunity/Trend: As we can read in this article, Ken Griffin, The founder, owner, and CEO of Citadel one of the largest hedge funds in the United States recently purchased the most expensive home in America. A top Real Estate located in New York, which is a penthouse overlooking Central Park.
Interest Group: The people interested in this are especially realtors around the country as this sets a ceiling on how expensive properties can reach.
Exploitability: People paying this huge amount of money on Real Estate shows how strong the economy is at this moment and that people are currently spending amid many people fear an upcoming recession.
Why: This points out that the fears of an upcoming recession might not be very true as one of the richest men in the country decides to purchase the most expensive property in the country.
3) Regulatory Change: Fed Officials Words Previous January Meeting.
Source: https://graphics.wsj.com/gallery/what-fed-officials-said-january-2019?mod=djemCentralBanksPro&tpl=cb&mod=article_inline
Regulatory Opportunity/Change: The Feds have signaled that there is no need to raise the short term interest rates anytime soon. Most of the feds are now in a position of wait and see what happens for the next couple of months.
Interest Group: When the Fed raises interest rates, it mainly affects banks because when they borrow money from the Fed they have to pay higher interest rates. Thus, makes the customers of the banks pay higher interest rates because it becomes more expensive for the bank to borrow money.
Exploitability: This is important because banks and people should not fear that in this upcoming meeting of next week that the Fed will wise interest rates yet again after doing so 4 times last year.
Why: Since interest rates are not raising is a point to exploit the opportunity for banks to not fear of borrowing money for the next couple months as interest rates might stay the same for the next weeks.
4) Regulatory Change: Future Investigation On Major American Banks Can Lead To Changes In Banking Industry.
Source: Wall Street Journal - https://www.wsj.com/articles/house-democrats-considering-hearings-with-biggest-u-s-banks-11548373338?mod=searchresults&page=1&pos=3
Regulatory Opportunity/Change: Top chief executives of major American banks will hold talks with Congress. Such an event has not occurred since the financial crisis, this talks will try to get Congress to investigate and find irregularities in the Banking industry.
Interest Group: This affects many people in the banking industry because if there are irregularities in their firm this can lead to the loss of many jobs if sanctions are made by the government.
Exploitability: This is a good time to be on the lookout to see if there are things that are not being done right, to seize this opportunity to make things right and avoid sanctions and mainly stop illegal activities.
Why: This matter is extremely important because in the last financial crisis it was all at fault of the large Investment Banks who were giving out credit products and loans without reliable sources and giving better credit ratings than they should. This is something to be learned for the future.
Source: Wall Street Journal - https://www.wsj.com/articles/white-house-adviser-says-fed-board-nominees-should-support-easy-money-policies-11548375931
Economic Opportunity/Trend: I think this creates an opportunity for qualified Economist who want to fight to have a seat in the Federal Reserve Board. As President Donald Trump is seeking to fill upcoming two vacancies in the board. President Trump has been known that in the previous months has highly disagreed with the current Fed because of his constant rise in interest rates.
Interest Group: Again, I believe highly qualified Economist that can be to President Trump liking would be ideal. Even though the current Fed was appointed by Trump, they have strongly disagreed on interest rates increase. So the upcoming seats I am sure must be someone close to the president that can have similar economic ideologies.
Exploitability: The interest rates being rates are not a necessarily good thing for people who want to invest so we might see some retreat from investors and are more careful with the amount of money being spent.
Why: This is an opportunity because people interested in filling up this position should start forming a strategy, also when these people are appointed we will also know they are more of republican liking style of economy. More economic freedom for the people.
2) Economic Trend: Ken Griffin Purchases Americas Most Expensive Real Estate
Source: Wall Street Journal - https://www.wsj.com/articles/billionaire-ken-griffin-buys-americas-most-expensive-home-for-238-million-11548271301?mod=trending_now_1
Economic Opportunity/Trend: As we can read in this article, Ken Griffin, The founder, owner, and CEO of Citadel one of the largest hedge funds in the United States recently purchased the most expensive home in America. A top Real Estate located in New York, which is a penthouse overlooking Central Park.
Interest Group: The people interested in this are especially realtors around the country as this sets a ceiling on how expensive properties can reach.
Exploitability: People paying this huge amount of money on Real Estate shows how strong the economy is at this moment and that people are currently spending amid many people fear an upcoming recession.
Why: This points out that the fears of an upcoming recession might not be very true as one of the richest men in the country decides to purchase the most expensive property in the country.
3) Regulatory Change: Fed Officials Words Previous January Meeting.
Source: https://graphics.wsj.com/gallery/what-fed-officials-said-january-2019?mod=djemCentralBanksPro&tpl=cb&mod=article_inline
Regulatory Opportunity/Change: The Feds have signaled that there is no need to raise the short term interest rates anytime soon. Most of the feds are now in a position of wait and see what happens for the next couple of months.
Interest Group: When the Fed raises interest rates, it mainly affects banks because when they borrow money from the Fed they have to pay higher interest rates. Thus, makes the customers of the banks pay higher interest rates because it becomes more expensive for the bank to borrow money.
Exploitability: This is important because banks and people should not fear that in this upcoming meeting of next week that the Fed will wise interest rates yet again after doing so 4 times last year.
Why: Since interest rates are not raising is a point to exploit the opportunity for banks to not fear of borrowing money for the next couple months as interest rates might stay the same for the next weeks.
4) Regulatory Change: Future Investigation On Major American Banks Can Lead To Changes In Banking Industry.
Source: Wall Street Journal - https://www.wsj.com/articles/house-democrats-considering-hearings-with-biggest-u-s-banks-11548373338?mod=searchresults&page=1&pos=3
Regulatory Opportunity/Change: Top chief executives of major American banks will hold talks with Congress. Such an event has not occurred since the financial crisis, this talks will try to get Congress to investigate and find irregularities in the Banking industry.
Interest Group: This affects many people in the banking industry because if there are irregularities in their firm this can lead to the loss of many jobs if sanctions are made by the government.
Exploitability: This is a good time to be on the lookout to see if there are things that are not being done right, to seize this opportunity to make things right and avoid sanctions and mainly stop illegal activities.
Why: This matter is extremely important because in the last financial crisis it was all at fault of the large Investment Banks who were giving out credit products and loans without reliable sources and giving better credit ratings than they should. This is something to be learned for the future.
Hi Mario,
ReplyDeleteI thought your blog post was a very interesting read. I was not aware of these topics until I read them in your article. Each opportunity affected a large group of people. In addition, the issues would have major consequences if they are not solved. I am glad you provided lots of information for the reader. To improve this post, I would space out the subtopics so that they are easier to read.
Hey Mario,
ReplyDeleteI think it is insane how expensive that penthouse was in New York City. It shattered the last real estate record by a lot. I did like the takeaway you had from it about how that purchase shows how strong the United States' economy is. It will be interesting if he tries to sell it in recent years to come. I would like to see how it is re-evaluated.