The Privatization of Water

The Privatization of Water

Daniel Lizarazo
Public Policy

The involvement of the private sector in the provision of water supplies is a highly controversial topic. Typically, water supplies across the United States are handled and managed by not-for-profit entities which are overseen by state and local municipalities, meaning the public sector, and more specifically the government. With the public sector at the helm of water provisions, citizens can typically expect to see reasonable prices and clean water. Most have not considered the possibility of their local water supplies being privatized, but the US economy is currently being battered by exogenous effects that are unabating. It is during these times, where cash flows are diminishing, that companies and individuals alike begin to explore ways to cut costs. State and local municipalities face the same set of issues. In some cities and towns, the burden of debt becomes too heavy to bear, and the municipal governing boards have to make hard decisions. The sale of a city’s water system can shift a substantial debt burden over to a private sector company all while providing the city a monetary windfall. Multiple cities in Indiana have gone through this (Douglas, Elizabeth). This can be more likely to occur in small towns that are highly levered who are not able to raise funds as quickly compared to bigger, well-capitalized towns.

No, Movie Theaters Are Not the Next Blockbuster

No, Movie Theaters Are Not the Next Blockbuster

Andy Colando
Business Current Events

Even if you haven’t been paying close attention to the movie theater industry, it should come as no surprise that cinemas have had an extremely challenging time since the start of the coronavirus pandemic. Similarly, to cruise lines and restaurants, operations were brought to a near standstill in March of 2020. Even with restrictions in many states reduced or fully lifted, some consumers, at least for now, have remained wary. Even amid the initial releases of anticipated blockbusters like Marvel’s “Black Widow” and Warner Bros’ “Space Jam”, weekend box office sales in the United States are only slightly surpassing some of the worst weekends for the box office from 2019.

Fuel Cell Industry Frenzy

Fuel Cell Industry Frenzy

Ananya Malik
Investing

With the lingering volatility in the markets due to the pandemic, some industries have outperformed others by making huge financial gains. Within the energy industry, stock prices have skyrocketed even with wary financials. Technologies within this industry, such as fuel cells, have recently become more relevant after decades of being in the shadows of many other innovations. Fuel cells are similar to batteries that never run down. Hydrogen fuel cells are produced in sustainable ways due to the abundance of Hydrogen. (Energy.gov, 2021). With many companies needing different ways to generate sustainable forms of energy with fuel cells, companies such as Plug Power have risen to the top.

The Power of Cathie Woods’ Long-Term Perspective

The Power of Cathie Woods’ Long-Term Perspective

Andy Colando
Finance

Cathie Woods—the founder, CEO, and Chief Investment Officer of Ark Investment LLC—became something of a financial Rockstar in 2020. Her flagship portfolio, the Ark Innovation ETF (ARKK), has returned close to 50% in the last 12 months and has an annualized return of over 25% since its inception in November 2014. Much of this success has been attributed to the explosive growth of stocks in emerging or disruptive industries, affirming Woods’ foresight in key areas of growth and innovation over the last 6 years. These include an emphasis on autonomous vehicles, fintech disruptors like cryptocurrency, space exploration, and the advancement of genomics, all of which Ark has additional ETFs to capitalize on specifically. As you may expect, Ark’s innovation-focused investing strategy can require a great deal of conviction, and with that the resolve to prioritize a long-term outlook over daily price movements of stocks and quarterly results when making decisions. This may sound obvious, but it is a key aspect of markets that investors and company managers alike often struggle with.

How a Clock is the Missing Piece to Deep Space Travel

How a Clock is the Missing Piece to Deep Space Travel

Jaret Prothro
Technology

Imagine this scenario: You are tasked with shooting an arrow and hitting a target the size of a quarter. This in itself is a pretty difficult task that requires immense accuracy. Now, the quarter-sized target that you are tasked with hitting is sitting in Times Square, New York, and you are standing in Los Angeles. This is the example that Jill Seubert uses to contextualize her job as a deep space navigator. Seubert is in charge of steering spacecraft from the moment they separate away from the launch vehicle until they reach their final destination. She has the opportunity to adjust the course of the spacecraft (the arrow in the analogy) only a couple of times along its trajectory. But in order to make the necessary adjustments, she must know the exact location of the spacecraft at any given moment in time.

Quantitative Easing: Its Mechanism, Aftermath, and Evaluation

Quantitative Easing: Its Mechanism, Aftermath, and Evaluation

Vincent Z. Yu
Economics

While conventional monetary policies involve mild modifications of various metrics, unconventional policies are aggressive endeavors for a short-term major impact. Quantitative Easing (QE) is a major component of it, envisioned more than a decade ago for strong stimulation of a distressed economy. QE refers to large-scale purchases of securities, through which central banks directly pump a tremendous amount of cash into the market. For example, the Fed had already reduced the federal funds rate to zero in 2008 amid economic deterioration. While some European countries pushed down the rate to its negative, the Fed announced a plan of buying mortgage-backed securities and debt issued by government-sponsored enterprises. This was the beginning of the five-year long expansion period for the Fed’s balance sheet as well as the debate over QE and its application.

Private Equity’s J-Curve and Its Mitigation

Private Equity’s J-Curve and Its Mitigation

Ethan Wildes
Finance

Within private equity, a fund’s returns often resemble a J-Curve where there exists a small loss before a continued gain. This image would resemble a “J” when charted. This is especially common for private equity firms that purchase struggling companies and attempt to turn them around. These firms will take on unprofitable businesses, and tag along management fees that keep investor returns low or negative until their investments begin to mature, and the purchased businesses become profitable. This creates a period wherein traditional private equity investment is unprofitable and returns are low, or the dip at the beginning of the “J”. These cash flows depend on the “timing of cash flows, timing of performance, and market performance” (Diller, 20). By pulling these levers one way or another, the J-curve can be manipulated. With research indicating that funds with at least 15% private investment outperform their peers, the benefits of seeking these investments are clear. But how can we reduce the time in which these investments underperform?

ESG: The Future of Investing

ESG: The Future of Investing

Peyton Stanley
Finance, Investing

As society moves towards more sustainable measures and public consciousness increases, ESG components will become more prevalent and a determinant in investing. Pivotal investment companies, such as Morgan Stanley, are already prioritizing ESG in their strategies and integrating monetized measurements to provide a competitive advantage. Currently, ESG proceedings are primarily symbolic over substantive. Many ESG topics will not have prompt impact but over time, companies can reap the benefits from the longevity of their ESG investments (Insights, 2020). However, as research and technology prevail and society looks forward, tangible initiatives will transpire and ESG investing will promise a future edge for progressive investors.

The Coding Interview

The Coding Interview

Ina Patrice Gonzales
Technology

About four years ago, in August 2017, I began my journey to obtain my undergraduate degree as a biology major on the pre - health track. For the majority of my life, I dreamed of wearing the iconic white lab coat, listening to patients, and providing aid for their ailments. However, all of that changed when I enrolled in the first four courses of my freshman year of college: General Chemistry I, Introduction to Biology I, Composition II, and Faith and Critical Reasoning. I struggled through my first two science courses and after receiving my horrible midterm grades, I promptly decided that biology was no longer for me. I felt lost with what I wanted to do in my life, but I knew that I had to achieve my undergraduate degree one way or another. On average, about 36 million Americans attend college but are unable to complete all of their coursework in order to obtain their respective degrees (Fain, 2019). Although I was incredibly lost in my future, I knew that I wanted to push myself further and finish college as it is an extreme privilege that many do not have. This led me down the path of mathematics where I rediscovered a passion for logical reasoning and calculations. Following this, I enrolled in my first computer science course, Computer Science I.

Ethiopia Industrial Policies Part 2: Importance of Private Entrepreneurship in Export-Oriented Strategies

Ethiopia Industrial Policies Part 2: Importance of Private Entrepreneurship in Export-Oriented Strategies

Vincent Z. Yu
Public Policy

In part 1 of our discussion, we talked about how import-substituting strategies have their unique and crucial contributions to the progress of a developing country, like Ethiopia. Domestic control over far-reaching input capital goods, such as cement, metal, natural resources, etc. provides robust support to virtually all other industries. Contrary to import-substituting policies, export-oriented ones provide fast rides to advanced technologies, mature management, and a larger market, though at a high cost of local control and path certainty.

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