Before revision:  Variable selection and the estimation of the forecasts is performed by using the LASSO method, together with some of its popular modifications. Additionally, a modification of the LASSO is proposed, combining the methods of LASSO and principal components , in order to further improve the forecasting performance.
After revision:  Variable selection and the estimation of the forecasts , we use the sparse methods - LASSO together with its recent modifications. We propose an adjustment that combines LASSO cases with principal components analysis that deemed to improve the forecasting performance.