An election is a great way to understand macro-trends since you have access to a very large sample size. From the preliminary results that have emerged so far, here are a few business and growth opportunities that iProceed has identified:
- Oil/energy prices will continue to be high. A Republican presidency means that chaos in Iraq will continue and it is very likely that Iran and/or other countries may be attacked by the United States further disturbing global peace. Great time to enter/strengthen oil/energy and security/defense related businesses.
- iProceed's analysis also shows a recession in 2005 and it is a good idea to enter into businesses that benefit from recessions (e.g. lower priced consumer products, used goods, etc.). (Related article: iProceed analysis on recession in 2005)
- Taxes will go up as government revenue remains stable or drops slightly. We expect only a modest increase in taxes. Again, as disposable incomes drop, opportunity for lower priced goods. (Related article: Tax hike expected in 2005)
- Terrorism will continue to be a major concern on a global basis. We expect continuation of the depressed business environment for travel/tourism, airlines/transportation but strength in home improvement. Spending on homeland security will explode.
- Employment situation is expected to get even worse (offshoring will pick up rapidly in 2005-06 as infrastructure overseas improves further and companies are under pressure to cut costs, particularly in pharma/biotech sector). We expect a sharp rise in home-based businesses and self-employed Americans. There are several business opportunities in serving this segment. Similarly, American companies need to think of global expansion. Most growth opportunities exist outside of the borders of the United States where most of the consumers still do not have access to what we take for granted (broadband, consumer products, financial/banking services, etc.).
- With the renewed emphasis on moral values, products and services related to religion present an excellent business opportunities (e.g. books/movies/websites/video games based on religious themes)
- It appears that gays and lesbians will have a difficult time finding broad social acceptance and will continue to maintain their niche status. Accordingly, businesses that target these high-value customers and cater to their special needs will benefit tremendously.
- With US taking a more confrontational approach going forward, it is obvious that the center of gravity will shift from the US but we can not think of any other single location that will assume the new role. We expect that several locations will find their niches. Japan will continue to make strides in transporting pop culture, particularly in Asia. China will develop more strength in manufacturing and operations related R&D. India will emerge as a major global player in cutting-edge, technology-oriented businesses, particularly in IT, biotech, and healthcare. While Russia and Brazil will continue to grow, it is unlikely that they will have much impact on US economy except for creating new business opportunities for American corporations.