Friday, January 25, 2019

6A – Identifying Opportunities in Economic & Regulatory Trends

1. Economic: Medical marijuana dispensary plans five-store expansion
a. Article
b. With the recent lift on marijuana bans across the country, it has become quite the sought-after commodity. California for example has been selling out of marijuana at an astronomical rate. While Florida hasn't lifted its ban on recreational use, its lift on a medical ban, under a governor who doesn't seem like an advocate for the substance, is a sign that it is on the rise. I can only imagine that, given time, the product will begin to sprout companies that will have stocks; stocks that up and coming investors like myself can invest in.
c. I can only imagine that investors of all types will be jumping on an opportunity to invest in companies that sell marijuana. However, the typical customer of marijuana will not change: those with medical documents claiming they need it and stoners. The last major consumer of this product will be those who dispense it, such as this dispensary talked about in the article that is aggressively expanding.
d. While this opportunity seems like an easy one to jump aboard on, I can only imagine the entry into these kinds of stocks, if they prove to be successful, will be rather high. Only the smartest and the richest will be able to make good profits on this; and even then, stocks are always uncertain.
e. When it comes to news of marijuana legalization, most people either look at the politics of it, or the fact that they will have access to marijuana legally. Now, I'm sure I'm not the only one to consider the financial possibilities that legalization brings along with it, but I'm certain that not everyone thinks about the financials of it, apart from how much it will cost. I don't think I'm extremely well qualified to go in depth in the matter, but I'm certain on something, that there is a lot of money to be had in this business.

2. Regulatory: sea level rise - Fed up with floods, homeowners and cities examine how to raise houses - After Hurricane Irma flooded her Coconut Grove home, Penny Tannenbaum decided to elevate it to protect her property from climate change, but she couldn't find straight answers. The city of Miami is now revising its codes to make preparing for sea level rise and storms easier.
a. Article 2
b. With rising sea levels around the globe, people in coastal cities are starting to feel pressured by the ever rising waters. This has led to people, like the woman in this article, becoming increasingly frustrated with their local governments for not dealing with this potentially catastrophic issue. However, this has led me to believe there is an opportunity for profit and regulatory change here. With the sea levels rising by the day, eventually governments will cave and begin to both lift land codes and regulations, as well as take action on the world's climate. This will lead to major changes all across the nation, with stocks of companies that produce pollution going down, and those that help the environment going up. But the more pressing economic opportunity comes in the form of real estate. People are going to need to lift their homes off the ground and away from the water in order to maintain their homes.
c. The consumers of this opportunity will anyone living in a coastal city, or simply those concerned with the safety and integrity of their home. While those capitalizing on the opportunity will be investors, workers in the real estate industry, and construction companies.
d. With stock investments, it will be very easy, because it is guaranteed that climate reform will come. All people need to do is invest in companies that will benefit from climate reform, like Tesla for example. However, it is really difficult to exploit it on the real estate and construction end, because of how much it fluctuates. Natural disasters, climate, and the government all play large factors that can quickly change the playing field.
e. Having lived in Miami for all my life, I know what it is like to be in fear if my home will sink. This fear is a great motivator to not only reform the current climate regulations, but also capitalize off of the lack of reform for my own monetary gain.

3. Economic: After a $47 million makeover, historic hotel wants to offer a ‘curated Miami experience'
a. Article 3
b. With the success of hotels on Miami Beach for several decades, it's no secret that making investments in real estate in the beach areas of Miami is generally a good idea that will make a return in some way or another. But more importantly and safely, one should make investments in the design industry. Many people don't realize how much money goes into home and hotel design until they see articles like this, detailing how business moguls spend millions to get the best designer to purchase the best furniture, no matter how expensive.
c. The primary consumers of this will be those with hotels and other rental real estate in Miami that want to make the most profit.
d. This is an opportunity that will be very difficult to capitalize on, unless you have insider knowledge from an expert in the business or a long-time stock investor.
e. Having connections with some well-known designers from Florida has led me to realize the ludicrous amount of money that goes into this business.

4. Regulatory: DeSantis: 'Floridians have spoken, and - we will listen'
a. Article 4
b. With a new governor entering office in a Florida government, it is clear that many regulatory changes will come of it. However, the amount of change that will come is unclear at this moment. However, one major change that will most likely come about is that or healthcare in Florida, a major promise of DeSantis throughout his campaign. One major component is assisting those who are victims of addiction, which presents the opportunity for anyone able to provide such a service.
c. The major consumer of this will be anyone who is in need of rehabilitation as well as anyone at risk of becoming addicted.
d. This is another opportunity that will be hard to capitalize on if you have no contacts with either the state government or healthcare professionals.
e. This opportunity presented itself to me because of how closely I follow politics, as well as my particular disdain for the current medical systems present in our country.

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