Question

Does market experience eliminate anomalies?

Answer 1

YES, having relevant market experience eliminates anomalies because of the following reasons:

1. Knowledge of market upper and lower limits hence preparation can be done:  Since we have gained market expertise the upper and lower limits of the market is known. The person can prepare for the expected deviation. Any needful requirements can be fulfilled beforehand to mitigate any losses which are foreseen.

2. No unexpected costs and losses: Since the market is known and a detailed experience is there, the chances of unforeseen losses or cost being incurred fall drastically.

3. Expected demand variation can be anticipated:  All the stakeholders including customers, suppliers, investors are well known for market expertise any variation in the demand can be anticipated and be prepared well in advance.

4. New offers and methods can be innovated since we have the nerve of the market: Since the market domain is known and we have full knowledge of the audience in terms of customers, suppliers any new innovation or diversification can be well planned, and a fund planning can be accordingly done.