Assignment 6A

Economic Trend 1

            Source: https://www.wsj.com/articles/deutsche-banks-u-s-operations-deemed-troubled-by-fed-1527768310

            Why it might exist: I think an opportunity might exist because many people who work at Deutsche Bank are going to lose their jobs

            Prototypical Customer: The prototypical customer would be the bankers who have lost their jobs

            Exploitable?: I think it is completely exploitable because these people have experience and can easily take advantage of their past to help them succeed in the future

            Why did I see it?: I saw this because I am interested in investment banking and follow the news related to it. Others might not see it but people who are in a similar situation as my own or currently work for banks would probably see it too.

Economic Trend 2

Source: https://www.usatoday.com/story/money/markets/2018/05/31/time-switch-investments-treasury-yields-outperforming-us-equities/658301002/

            Why it might exist: An opportunity might exist here because this is a situation that we don’t see very often. Treasury bonds are returning more than the market’s dividends and there has to be a way to exploit this.

            Prototypical Customer: I think the people who could take advantage of this would have to be stock traders or market analysts.

            Exploitable?: I personally am not sure how to exploit it so I can’t say for sure, but I assume that there are people who know how to exploit this opportunity.

            Why did I see it?: I saw it only because I was working on this assignment and clicked on an article that I usually wouldn’t

Regulatory Trend 1

Source: https://www.washingtonpost.com/business/economy/us-europe-tries-strain-over-trumps-trade-war-online-privacy-dispute/2018/05/30/7da8808e-6422-11e8-a69c-b944de66d9e7_story.html?noredirect=on&utm_term=.0146613a6b51

            Why it might exist: I think an opportunity might be growing since there will be new trade restrictions on steel and aluminum. This is could create a shortage and increased demand for steel and aluminum in the US.

            Prototypical Customer: I think the people who would most likely take advantage of this opportunity would be steel and aluminum manufactures in the United States, or in countries that the trade regulations will not affect.

            Exploitable?: If the tarrifs do go through, then it will completely be exploitable for profit.

            Why did I see it?: I saw this simply by reading the front page of the Washington post, which I do most mornings so I think most people who understand supply and demand and also read the paper could see it as well.

Regulatory Trend 2

Source: http://money.cnn.com/2018/05/31/news/companies/sports-betting-delaware-sportspick/index.html

            Why it might exist: The opportunity exists because of a supreme court ruling that legalized sports betting. Now there will be a need for legal bookmakers and betting operations that did not legally exist before.

            Prototypical Customer: I think the people who can take advantage of the opportunity would be anyone who knows how to run a book. Also the customers will be sports fans everywhere.

            Exploitable?: This is completely exploitable. All you have to do is set up a book and start getting regular clients.

            Why did I see it?: I dabble in gambling myself so I have been following the news about it since the supreme court ruling. This is a pretty obvious opportunity though, so I think a lot of people will see it.