Figuring Out Buyer Behavior No. 2

Brittany Traynor

Identifying Opportunities in Economic & Regulatory Trends

Due: 09/22/17

Economic Opportunities

1. Cryptocurrency Investment

·      Source: http://www.businessinsider.com/cryptocurrency-market-coin-trends-cap-value-2017-9

·      I think that this opportunity exists for several reasons. First of all, the markets for the major cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin, are doing extremely well right now. This makes them smart investments. In addition, I believe that eventually, cryptocurrencies will be extremely valuable, and probably the main source of currency used in major international businesses. They are easier to use and trade from country to country, as opposed to having to transfer currencies in exchanges.

·      Anyone who wants to invest their money can be a customer for this opportunity, in addition to large businesses who wish to switch to electronic currencies for the purpose of saving time from having to transfer traditional currencies.

·      This opportunity is relatively challenging in my opinion, only because it requires some level of knowledge and understanding of the system. Cryptocurrencies are not yet something that many people even know much about, so in order to invest intelligently, they would have to do a little bit of research. However, I think that with time, they will grow and become more talked about, and also grow to be more valuable. This makes it smart to invest sooner than later.

·      I found this opportunity because I know several people who have invested in cryptocurrencies and made a lot of money. I believe that with all of the advancements in technology we have seen in recent years, it is important to follow and understand many trends and movements toward electronic currencies.

2. Investors Target Property Tax Deadbeats

·      Source: http://money.cnn.com/2012/03/05/real_estate/tax-liens/index.htm

·      Whenever individuals do not pay their property taxes, other individuals have the opportunity to bid on the chance to pay their property taxes. This is beneficial to those bidders because the property owner will then have to pay them back, plus interest. I believe the bidding usually starts around 18%, and goes down as bidders offer lower interest rates. This gives the property owner more time to pay what they owe, and it allows the bidder with the opportunity to make a profit.

·      A typical customer of this opportunity is anyone who will seek the opportunity, and who is financially stable enough to pay the property taxes of someone else in order to make a profit down the line.

·      I think this opportunity is relatively challenging to take advantage of because you would have to go out of your way to find someone who is far behind on paying their property taxes, and then be willing to reduce the potential amount of interest that you will collect in order to win the bid.

·      I found this opportunity through online research and heard briefly about it through a friend who is a real estate minor and has more extensive knowledge on the topic.

Regulatory Opportunities

3. Housing Markey Boom Due to Tax Reduction

·      Source: https://www.forbes.com/sites/samanthasharf/2017/04/26/what-president-trumps-tax-proposal-means-for-the-housing-market-and-the-value-of-your-home/#c5880dc690f7

·      I believe that this opportunity exists because right now, due to recent events and regulatory changes and implementations, it is relatively inexpensive to own a house. With tax changes and mortgage interest reductions, the amount of income that is taxed is reduced, and this in turn lowers the cost of owning a home.

·      The typical customer to take advantage of this opportunity is virtually any current or prospective home owner. Specifically, anyone who has lower income and struggles to own a home and make mortgage payments will benefit from this regulatory change.

·      I think that this opportunity is relatively easy to exploit because just about any taxpayer or home owner will be affected.

·      I found this opportunity because I have been following the news lately and my friend is a Real Estate Minor and talks about this stuff relatively frequently, so I decided to do some further independent research on it.

4. Legalization of Marijuana

·      Source: https://www.forbes.com/sites/caroltice/2014/11/14/meet-the-8-hottest-publicly-traded-marijuana-companies/#2fd51f606a0c

·      I think that this is a regulatory opportunity because with the rising change in laws regarding recreational and medicinal use of marijuana, there is great investment opportunity that is created as a result. According to this Forbes article, marijuana stocks are up 147% so far just this year. This demonstrates that opportunity lies in this newly legal investment environment.

·      Anyone can take this opportunity by investing in marijuana stocks. As long as you know enough about the stock market to feel comfortable making an investment, this opportunity can be capitalized on.

·      I would say that this opportunity is relatively easy to take advantage of because it is simply investment; however, some level of knowledge and comfort within the stock market is essential.

·      I came across this opportunity because I am a finance major and I often follow trends in stock, and with marijuana legalization being such a up and coming topic of conversation or issue, I had heard that marijuana stock was doing well and I did further research.