One opportunity that is pertinent towards economic trends is the fact that baby boomers are not retiring. A Prudential study brought to light the fact that over half of people aged between 45 and 75 were forced to delay retirement due to the recession. This in turn has caused millennials and the younger generation to adapt, due to the older generation retaining jobs for longer periods of time. This has given younger people the chance to develop new jobs in the marketplace, such as internet businesses or freelance gigs. Why I saw this opportunity is the fact that people and culture have adapted due to recent events to be more careful in their spending and decision to retire. The US debt crisis in 2011, fiscal cliff in 2012, and government shutdown in 2013 and 2019 have caused people to adapt towards a more tumultuous political and economic environment.
A second economic trend opportunity is climate change is causing more natural disasters. In 2019, the United States Department of Agriculture started that food prices may potentially increase between 1 and 2 percent overall. This is so for multiple reasons, such as the fact that corn and soybean yields have dropped significantly due to high temperature, as they suffer negative growth effects with any temperature of 84 degrees Fahrenheit. Furthermore, rising sea levels have caused areas such as Miami beach to launch $500 million public works programs. This creates opportunities such as beach re-nourishment companies and temperature regulated green-houses. As issues relating to climate change continue to grow in occurrence, more opportunities will arise for people to exploit, as climate change affects all areas of society. Why I saw this opportunity is the fact that I live in an area in Florida near the beach, and I have seen the first hand effects of tidal erosion, and the profit companies have gotten in their efforts to re-nourish the sand dunes.
A regulatory change that has brought forth an opportunity is the recent tariffs imposed by the Trump administration. The opportunity is the fact that the tariff has brought forth an attractive buying opportunity for certain stocks in the marketplace. Raymond James is quoted stating that Best Buy has a particularly strong buy rating, with shares down 3.74 percent on the week. Stockbrokers and investors can use this opportunity to make long term-profit and is easily exploitable due to the far-reaching effects of the trade war. This opportunity should be seen by most people, but the shortsighted nature of some make cause them to fear investing in such a turbulent marketplace.
A second regulatory change is fact that interests rates have recently leveled off. The Federal Reserve currently has raised the federal fund rate to 2.5 percent. 2 percent is typically considered the so called Federal sweet spot. Furthermore as inflation is at its 2 percent target, and unemployment below 4 percent, the economy will continue its expansion phase out of the past recession. This means that the cost of loans overall has stabilized, and savers are earning more money on their deposits than they did in recession. This has created an overall all larger buying and selling opportunity in the marketplace, as confidence in the market has increased. Why I found this opportunity is the fact that I’m constantly looking for opportunity to save and gain capital in my personal finances.
I find your first listed opportunity very interesting. I did not previously know that baby boomers were delaying their retirement and causing the proceeding generations to develop additional jobs. There may be another reason for the increased delay in retirement. Life expectancy has been in an upward trend over the past few decades. Because of this, workers remained employed longer in fear of retiring too early and falling short of savings.
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