what are some limits of forecasting 
a major constraint on forecasting is that it involves the future which is fundamentally unknowable as a result forecasts can only be educated conjectures while there are several methods of improving the reliability of forecasts the assumptions or data that go into the models have to be correct otherwise the result will be garbage in garbage out even if the data is good forecasting often relies on historical data which is not guaranteed to be valid in the future as things can and do change over time it s also impossible to correctly factor in unusual or one off events like a crisis or disaster can forecasting be used to predict the stock market perfectly predicting the market s ups and downs is impossible however investors can use forecasts to analyze company valuations identify growth sectors and manage risk within their portfolios that said unforeseeable events always impact the market so forecasts should be just one piece of the investment puzzle 