Reliable forecasts of the returns and risks likely to be generated by broad asset classes necessarily benefit performance-oriented investors. IFI does not endorse portfolio diversification for its own sake, or as a default position reflecting agnosticism about the future. They advise a passive strategy of buying, holding and re-balancing. Those who believe, in contrast, that managers can actively out-perform, tend to do so by claiming markets are irrational and perpetually mispriced. IFI believes this is a false alternative.
Markets are both efficient and forecastable.
Precisely because market prices are efficient integrators and anticipators of information relevant to security valuation, they also serve as high-quality inputs for reliable forecasting models. New information requires revised valuations. Objective Quantification IFI uses objective, statistically-based market analysis to identify the causal and exploitable patterns that exist among market prices and asset classes. Our quantitative models are developed and tested by rigorous regression techniques. IFI's models and forecasts incorporate the best elements of free market economics as well as fundamental and technical analysis.