Assignment 6A
1. Recreational Marijuana legalization in Florida. (regulation)
Found: https://www.orlandoweekly.com/Blogs/archives/2018/06/01/legalizing-pot-could-be-key-issue-for-florida-democrats-in-2018
Many Florida Democrats running in 2018 have put the legalization of recreational marijuana high of their list of campaign promises, telling me that this regulatory change has a strong chance of happening this election cycle. The most likely customer for the opportunity would be current and prospective marijuana smokers living in Florida. The opportunity would be easy to take advantage of, as all business proceedings related to marijuana would make any attempt at a business legal. I saw the opportunity because both of my grandparents have medical marijuana prescriptions and I've been following the legalization movement for quite some time.
2. Casino gambling legalization in Florida (regulation)
Found: https://www.naplesnews.com/story/news/government/2018/05/14/supreme-court-sport-betting-ban-florida-gambling/607935002/
Another issue on the Florida ballot, but not as far along the path to legalization as marijuana, is casino gambling. The state's never ending need for growth and revenue assure me that the issue of casino gambling won't be loosing any momentum any time soon. The most likely customers of Florida's new casino's would be tourists, however there are many locals that would frequent the casinos as well. The opportunity is again easy to exploit, as any business venture would be totally legal should the regulation pass. I saw the opportunity because I am a gambler myself, and many of us dream of the days where we can play at a full fledged casino in our home state.
3. Impending subprime auto loan crisis
Found: https://www.businessinsider.com/auto-loan-delinquency-rates-worse-now-than-during-the-financial-crisis-2018-4
The economic trend of longer term, higher interest auto loans does not bode well for the industry's future. When the bubble bursts, new car sales will sharply decline, and many recently sold cars are going to become ownerless. used car dealers can expect to buy those cars cheaply, and profit from customers that either can't afford to or chose not to buy new cars. Should you be either a used car salesman, or someone who can afford a new car when the auto loan bubble burst, the opportunity would be easy to take advantage of.
4.Oil prices rise as US production and Inventories fall.
Found: https://www.wsj.com/articles/oil-prices-rise-as-storms-approach-u-s-coast-1536749048
As the US cuts oil production and the amount of oil in its reserves, oil prices have been steadily rising over the last few months. As everyone drives cars, and my truck gets a whopping 10 mpg, this is certainly an important and worthwhile economic opportunity. Although this price movement is typical, prices are certain to fall and bottom out should prices rise enough for long enough for American drilling to become profitable again. Sellers of oil futures would benefit from selling futures closer to current prices to buyers of futures, the prototypical customer. Since I spend obnoxious amounts of money on gasoline to commute everyday, I track oil and gas prices far more often than I should, which is how I found the opportunity.
Found: https://www.orlandoweekly.com/Blogs/archives/2018/06/01/legalizing-pot-could-be-key-issue-for-florida-democrats-in-2018
Many Florida Democrats running in 2018 have put the legalization of recreational marijuana high of their list of campaign promises, telling me that this regulatory change has a strong chance of happening this election cycle. The most likely customer for the opportunity would be current and prospective marijuana smokers living in Florida. The opportunity would be easy to take advantage of, as all business proceedings related to marijuana would make any attempt at a business legal. I saw the opportunity because both of my grandparents have medical marijuana prescriptions and I've been following the legalization movement for quite some time.
2. Casino gambling legalization in Florida (regulation)
Found: https://www.naplesnews.com/story/news/government/2018/05/14/supreme-court-sport-betting-ban-florida-gambling/607935002/
Another issue on the Florida ballot, but not as far along the path to legalization as marijuana, is casino gambling. The state's never ending need for growth and revenue assure me that the issue of casino gambling won't be loosing any momentum any time soon. The most likely customers of Florida's new casino's would be tourists, however there are many locals that would frequent the casinos as well. The opportunity is again easy to exploit, as any business venture would be totally legal should the regulation pass. I saw the opportunity because I am a gambler myself, and many of us dream of the days where we can play at a full fledged casino in our home state.
3. Impending subprime auto loan crisis
Found: https://www.businessinsider.com/auto-loan-delinquency-rates-worse-now-than-during-the-financial-crisis-2018-4
The economic trend of longer term, higher interest auto loans does not bode well for the industry's future. When the bubble bursts, new car sales will sharply decline, and many recently sold cars are going to become ownerless. used car dealers can expect to buy those cars cheaply, and profit from customers that either can't afford to or chose not to buy new cars. Should you be either a used car salesman, or someone who can afford a new car when the auto loan bubble burst, the opportunity would be easy to take advantage of.
4.Oil prices rise as US production and Inventories fall.
Found: https://www.wsj.com/articles/oil-prices-rise-as-storms-approach-u-s-coast-1536749048
As the US cuts oil production and the amount of oil in its reserves, oil prices have been steadily rising over the last few months. As everyone drives cars, and my truck gets a whopping 10 mpg, this is certainly an important and worthwhile economic opportunity. Although this price movement is typical, prices are certain to fall and bottom out should prices rise enough for long enough for American drilling to become profitable again. Sellers of oil futures would benefit from selling futures closer to current prices to buyers of futures, the prototypical customer. Since I spend obnoxious amounts of money on gasoline to commute everyday, I track oil and gas prices far more often than I should, which is how I found the opportunity.
Hi Timothy,
ReplyDeleteYour number 1 has been a big issue that has been up in the air not only for Florida but for any other states as well. Many people are trying to figure out if the advantages outweigh the disadvantages. I find it a very interesting topic since it has been lingering around for quite some time now. I can definitely see the advantages and disadvantages and can see why many people are hesitant on this complicated subject. Although I see a lot of people against it I do believe eventually the legalization of recreational marijuana will be passed. whether that is in the near future or not that is up in the air. Regardless of when it gets passed I can definitely see the opportunities.
Hi Timothy, I think your point about the auto loan crisis in Florida is very interesting. It's something I saw and thought about while doing this assignment myself, and I couldn't uncover a viable way to make that into an opportunity, so I think your point about used cars is very interesting. Do you have any concerns about barriers that might exist in this industry? Do you think there's enough demand for used cars if that many were to go onto the market?
ReplyDelete