Ventures

Last Rapport – A lot has changed in 3 months. The election of Donald Trump; America’s first private citizen president, has everyone guessing what U.S. policies will change. The U.S Fed increased interests rates to 0.75 percent, the 2nd rise in 8 years.

China has presented their new J-22 stealth aircrafts, heightening tensions for Japan and South Korea in the South China Sea’s. Narendra Modi has attacked the Indian Black Market (estimated at ¼ of GDP) by devaluing all 500 and 1,000 rupees notes at the end of 2016.

               8 of 9 U.S States voted to legalize recreational or medicinal marijuana, including California with the largest market. Tesla rounds out their full circuit plan for the generation and use of electrical energy with the future of SolarCity panel roofing.

Ø  ‘Green’ Ontario Market - Ontario’s LTEP environment plan will not be understood until late 2017, but it is likely the electric grid and storage will be a focus. In March 2017, the first Cap and Trade auction occurs and potential grant winners may be found on the website Ontario’s Centre’s of Excellence, showing the current non-profit support recipients and in all sectors, including Environment.

Ø  Forex Exchange – With Trump’s call out of Chinse Yuan manipulation, the Pound being hit through Brexit and the Euro seeing nationalist ties also rise with the 5 star movement in Italy, the Exchange market will be active but where to invest?

Ø  Gold - Currency volatility implies Gold could increase 9% to $1,250 USD / Dec.2017.

Ø  Oil – OPEC and Non-OPEC members have finally agreed to decrease supply, and with a pro-Oil agenda within the highest ranks of the US government – the winds are blowing in the right direction. Despite limited forecast changes for 2017, best case scenario could see prices increase to $75/barrel by end of the year.

o   If your ethics don’t bother you, these companies may succeed in 2017. ExXon Mobil (NYSE:XOM), Chevron (NYSE:CVX), BP (NYSE:BP), and Royal Dutch Shell (NYSE:RDS.A).

Forecast

Toboggan Runs

Ø  (Retail) Can the internet / mobile shopping business model replace Shopping Malls and Dept. Stores? Has the e-commerce predictions of the 1990’s finally found distribution and a market through a mobile audience.

o   Amazon (Prime Now) (NASDAQ:AMZN) with 2 hour delivery and Amazon Go – ‘Just Walk Off’ Technology could be a disruptor to larger retail and food chains.

o   The private retail store ‘Supreme’ releases new lines and limited runs each week. This model creates a large secondary resale market and strays from traditional mass release and a development of personalized brands.

Ø  Golf Apparel Market – Despite Dick’s Sporting Goods (NYSE:DKS) sales going up in US, Golf Town is closing stores in Canada. Can a Tiger Woods comeback rejuvenate interest in Golf?

Review:

 Reconsider: Netflix (NASDAQ:NFLX), Netflix jumped out the gate of Q3 with largest increase in 2016, on high returns and subscriber growth. The stock reached up to $129.29, and hit the barrier of $130 it can’t seem to cross. 2017 will continue present heavy competition (Amazon Prime & HBO Now) and new competitors (AT&T / Time Warner merger), which will create volatility.

Despite, Netflix being primed to be a big winner in 2017, early risk could be averted and a suggestion to re-buy in mid/late Q2 2017.

 

  Consider: The Motley Fool has predicted some safe bets for a potentially turbulent year in 2017, and although there is not an expectation for large stock growth, there should be moderate growth and stability. Moreso, each of the companies are investor friendly and provide strong dividends at 2.6% – 3.4%

> Waste Management (NYSE: WM) an industry leader in waste collection and energy generation in Canada, Puerto Rico and USA. With a strong presence in the market, their relationships with landfill operators and large public and private contracts make it difficult for competitors to break into the market. There is a risk the Canadian provincial contracts could be retracted in 2017, and impact growth.

> IBM (NYSE: IBM) the original tech company, which has lost ground over the years to competitors like Alphabet (Google), Microsoft and Amazon, is poised for a strong 2017. With AI developments in their Watson project and their Cloud model beginning to take hold (although a few years late) they will still remain relevant in the ever changing tech market.

Politics vs. Religion

               It is difficult to speculate on what a Trump presidency will mean to business and international relations, as we are in unchartered waters in comparison to the last 20 years of US governance. However, if his Gettysburg ‘First 100 Days’ plan is acted out – here are some projected highlights that will drive his agenda.

   Highlights from Trump’s Agenda to ‘Make America Great Again’

‘Drain The Swamp’ of Government Corruption

o   Constitutional Amendment for Term limits for all members of Congress

o   White House & Congressional Officials limits and bans for becoming Lobbyists

Global Trade Partnerships

o   Renegotiation of North American Free Trade Agreement (NAFTA)

o   Withdraw from Trans-Pacific Partnership (TPP)

o   Secretary of Treasury to label China as a currency manipulator

 ‘American Infrastructure Act’ public/private partnerships of  1 Trillion investment over 10 years

Lift Regulations and Restrictions from Business Development

o   Lift restrictions on Energy Production Reserves & Infrastructure (e.g. Keystone Pipeline)

o   Cancel ‘Climate Change’ funding for projects and redirect funding for US Infrastructure

o   Any new regulation must eliminate 2 existing regulations

  Legal and Public Security

o   Replace Justice Antonin Scalia’s seat on Supreme Court

o   Restoring National Security Act with larger investments in Military Expenditure

  Immigration Reforms and ‘End Illegal Immigration’ Act

o   Cancel all Federal funding of Sanctuary Cities

o   Remove 3 million illegals and cancel all country visa’s home country pushes back

o   Suspend immigration from ‘terror’ nations without proper vetting practices (e.g. Syria)

  Tax Reforms that will grow economy 4% per year and creation of 25 million new jobs

o   Middle Class Tax Relief up to 35% and simplify Tax Brackets from 7 to 3

o   Business Tax Relief 35% to 15% to have business’ return to US Soil

o   Tax Deductions through ‘Affordable Childcare and Eldercare Act’

o   Offshoring Act – tariffs and penalties where a work base is relocated of US Soil

 School Choice and Education Opportunity Act

o   End Common Core and bring Education Supervision to local communities

o   Expand Vocational and Technical Education

o   Lower Costs 2 – 4 year Post-Secondary programs

  Repeal and Replace ObamaCare Act

o   Healthcare Spending Accounts and Insurance competition by removing State regulations

o   Speed up the approval of life saving drugs by lessening FDA approval regulations

Digital Image – christhebarker – ‘sgtPepper2016’ (2016)

Mixtapes

   Top Five of 2016

1.    Rihanna – Needed Me (Album: anti- / Westbury Road Entertainment)

2.  Jadu Heart – Late Night (Album: Ezra’s Garden / Anchor Point Records)

3.  Kungs vs. Cookin’ on 3 Burners – This Girl (Single / House of Barclay - Casablanca)

4.  Kaleo – Way Down We Go (Album: A/B / ABC Radio)

5.  Beyoncé – Formation (Album: Lemonade / Parkwood-Columbia)

 

Full Playlist, if you have time….

> 2016 Bxst – 2016 lost some great musicians (Bowie, Lemmy (late 2015), Phife Dawg, Prince, Merle Haggard, Alan Vega, Leonard Cohen, Sharon Jones) but in their absence gained some great music.

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