6A – Identifying Opportunities in Economic & Regulatory Trends

6A – Identifying Opportunities in Economic & Regulatory Trends


Economic Trends

1.  "3 Investing Trends To Watch In 2019"

I believe that there is an opportunity in Artificial intelligence because of the high market expectation for this filed. In the article, there is a company called Waymo, which has artificial intelligence systems for its technology. Although Waymo is still in its early stages, the estimates have put the company's potential market value at 70 billion. 

The potential customers can be anyone in the world. We can have AI everywhere in our life, such as a robot cleaner. I believe the opportunity is relatively easy to exploit because the machine is doing many things that used to be done by human beings, like in agriculture, manufacturing, and so on.  I believe there are much more opportunities for AI to show up in the world. 

AI is a trend in the world right now. Many new-born companies are focusing on AI technology. The first time that I get interested in AI is because of an AI maid in a movie. I believe there must be one day that the movie scene would become a reality. 


2. “China will overtake the US as the world's biggest retail market this year
https://www.cnn.com/2019/01/23/business/china-retail-sales-us/index.html

I believe that there is an opportunity in the Chinese E-commerce retail market because of the rapid growth of E-commerce business in China. More than 35% of Chinese retail spending is expected to take place online compared with just 11% in the United States. The huge market shares and rapid growth have shown the great potential profit in this field.

The potential customers can be anyone who buys goods online. I believe the opportunity is relatively easy to exploit. Because almost everyone needs to buy products online, except some elder groups who are unfamiliar with the internet.

I believe this opportunity exists since the first time I shopped online. Almost every week I will buy goods online.




Regulatory Changes

1. “5 Big Regulatory Changes That Could Affect Your Business
https://www.businessnewsdaily.com/7671-regulatory-issues-changes.html

I believe there is an opportunity in the small business physical store in the US. The recent Supreme Court decision will probably lead to a higher tax rate for online small business retail stores. Compared to that, the physical store has an advantage now.

The potential beneficiaries will be the investors in the physical stores. I think the opportunity is relatively difficult to exploit because we can't accurately estimate how the government gives out policies about these businesses.

I believe this opportunity exists because I think e-commerce is growing too fast, which has threatened the small business physical stores. I think the government will balance the situation, which means the government may carry out some policies that will be beneficial to physical stores.



2. "Gold Surges to Seven-Month High With Dollar Slumping"
https://www.wsj.com/articles/gold-inches-up-as-dollar-weakens-11548427318?mod=searchresults&page=1&pos=9

This is the potential opportunity in the gold market. As dollar keep slumping, people tend to buy more gold as a store of monetary value, which has caused the increase in the price of gold. We can buy gold in somewhere with a lower exchange rate and sell it in the US.

The customers can be all FX market investors. The opportunity is relatively easy to exploit if we have a sound system to make quick deals.

I'm trading on a small amount of CNY/USD right now. I always check news about currencies, including gold. All of the news are opportunities to make some money.




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