As the economy progresses into an age marked by the rise of streaming services and the collapse of brick-and-mortar empires like Blockbuster Video, consumers have swiftly adapted and embraced new technology. GameStop, a once thriving video game retailer with storefronts at many local malls, is suffering a similar fate. In December 2020, the video game chain announced that it would close up to 1,000 stores by the end of its fiscal year in March 2021. (Lauren Gray, Yahoo!). Even so, in January 2021, many investors woke to news headlines declaring a GameStop stock (“GME”) buying craze. Within six days, GME’s price soared from $43.03 on January 21st to $347.51 on January 27th, a 708% increase. (Google Finance). What happened?
Read MoreThe 2020 presidential election between President Donald Trump and former Vice-President Joe Biden marked a highly contentious race with a record-setting $14 billion in election spending between the two candidates. (Brian Schwartz, CNBC). After days of ballot-counting, former Vice-President Joe Biden was declared the president-elect of the United States (“U.S.”). (Scott Detrow and Asma Khalid, NPR). This article will address how a Biden Presidency may change financial regulations and the resulting impact these changes will have on the securities market.
Read MoreVenture capital hubs are historically based in cities such as San Francisco and New York and have a predilection for supporting Democratic candidates. (Thorne, Pitchbook). The most recent election proved to be no exception, venture capital contributions to the democratic party were even higher than they were in the 2016 election. (Center for Responsive Politics). The industry’s support for the democratic party grew in the most recent election due to Biden’s favorable policy proposals and industry grievances with the Trump administration. (Thorne, Pitchbook).
Read MoreOne of the more recent investing trends that has gained a foothold in financial markets is Environmental, Social, and Governance (“ESG”) investing. The trend represents a shift in the investment community, focusing on how investments can help increase environmental, social, and corporate governance goals rather than unchecked profitability. While ESG investing has seen increased participation in the last few years, the trend is not without objection, both from industry peers and regulatory bodies alike.
Read MoreThe 2020 presidential election could trigger an overhaul of private equity regulations, as the Democratic party, if elected into the White House, could unwind the Trump administration’s deregulation efforts. (APK Metropolitan News). The private equity industry is no stranger to change; the past ten years have brought dramatic changes to the industry. First, the private equity industry has grown considerably. The 2020 McKinsey Global Private Equity Markets Review reported there are now approximately 7,000 private equity firms, a 40% increase since 2010. (MJ Hudson). The Securities and Exchange Commission (“SEC”) estimated $2.7 trillion was raised in private markets in 2019, compared to the $1.2 trillion raised in public markets. (Zach Gibson, The Wall Street Journal).
Read MoreCartica Management LLC (“Cartica”) is a Washington D.C.-based investment firm that is thriving at global investing while utilizing a trending activist approach. Cartica utilizes an environmental, social, and governance (“ESG”) investment approach, which has become increasingly popular in 2020. (Kim, Bloomberg). In addition to seeking socially responsible opportunities, ESG investing has proven to be a lucrative method as 88% of indexes utilizing this sustainable method did better than their non-sustainable counterparts during the first quarter of 2020. Id. Companies, such as Cartica, are demonstrating that social progress and financial gain can coexist.
Read More