In the investment world there are two schools of thought - fundamental
analysis and technical analysis. At LIG we incorporate historical
precedent analysis along with both of these valuation systems.
Our analysis of historical data has shown that markets form trends in
price. Portfolios aligned with the prevailing trends of the markets - up,
down or sideways - benefit by the price movements within those trends.
Historical precedent analysis shows that patterns repeat over various
market cycles. This is due to the fundamental nature of markets which
are driven by supply and demand.
At the intersection of supply and demand is price and it reflects all
currently relevant information. This means that anything that could
possibly affect the market for a financial instrument - including
fundamental, technical, political or psychological factors - will be
reflected in its price at some point. Those fluctuating prices form trends,
and those trends are what our system strives to identify and exploit.
We do not try to predict trends. Our methods are based on the belief
that markets are very complicated systems and that they mostly defy
simple cause and effect explanations.
Since the market is a complex system we believe the best way to achieve
desirable results is by acting not on opinions of what might be, but on
what the market is actually doing.