Freedom of trade is alive and independent commercial channels continue to develop.
One of the best risk management strategy is to invest in opportunity cost.
Investing in known alternatives can compensate for the loss of opportunity cost in volatile economy.
Opportunity costs is defined as “The loss of potential gain from other alternatives when one alternative is chosen”
It is the value of the best alternative forgone, where a choice needs to be made
between several mutually exclusive alternatives given limited resources.
Opportunity cost is an intrinsic cost that can create great risks for investment later if you do not pay attention to it.
Diversifying product category is one example to reduce opportunity cost.
Unreserved market provides perfect ground for experimenting with diversification and alternative investment.
It helps investor study unknown factors and explore new opportunities through pure demand and supply.
New opportunities could absorb risks from volatile economy, especially in the long term.
Adam Smith’s Invisible Hand Theory