1. Albert Einstein was born on Pi Day

This bizarre link connects the greatest mathematician and greatest mathematical constant. Pi day is March 14. This is because, when abbreviated 3/14, it matches the first three digits of pi (not unlike February 27, when the world celebrates the delightful 1980s sitcom 227).

The famous set of proofs known as Einstein’s equations use pi to support the field equation relating the curvature of space-time to an energy source. The amount of gravity is proportional to the amount of energy and momentum. While I don’t purport to fully understand this equation, I do know that it provides evidence for the theory of relativity, so it is super important.

2. Pi can compute the size of the universe down to the last atom.

So, why does pi go to infinite digits? Is the universe advertising, “Coming soon: even smaller stuff to measure”? You’d think that measuring the largest thing in existence with a margin of error equal to the smallest thing in existence would require a very specific value for pi, with a long line of digits spouting out past the decimal. After all, the Milky Way has one hundred billion stars, and there are an estimated 10 trillion galaxies, which leaves us with 10^23rd stars. And that’s stars, not atoms. One could use a value of 10^57 atoms/star to increase the number of atoms being measured to 10^90. And that’s not even including the vast empty spaces between stars.
So, how many digits of pi would be needed to calculate the size of the universe down to the very last atom? Just 39. According to the YouTube video, that’s how specific you need to get with pi to calculate the size of, well, anything.

3. The Stock Markets Work In Pi Cycles

These days you do not have to listen to an investor very long before hearing of a boom-bust cycle.  The recent internet stock boom followed by a housing boom has left many confused.  An objective observer might wonder: what is the investor’s role in these events? Is he just a boat floating in the ocean with no control over what direction he travels?  It is more likely that a tidal system is present in markets and many investors are not able to see the pattern in order to set sail at the proper time.

Everyone knows that tidal patterns are present in our oceans.  The moon applies a gravitational pull to the earth as it rotates.  This causes the water on the face of the earth to literally be pulled towards the moon, creating a lower or higher tide level throughout the rotation.  In some cases a spring tide is experienced and the changes in water level are more dramatic than normal.  Tidal charts are readily available and create very accurate estimates of exactly when the high and low points of the cycle will be reached.  If your ship can only leave the harbor safely at high tide the chart will tell you exactly when that event will occur.A thorough understanding of tidal patterns is applicable in situations other than coastal living; most importantly for the purposes of this article, markets.  Consider the graph below and assume the Y axis measures price and the X axis measures time:

As the red line progresses through time it forms a seemingly smooth pattern of price action. The blue line is essentially moving along the same path as the red line but much more frequently travels away from and towards the mean. A practical application of this concept can be seen as we objectively analyze the major stock market averages. They have technically been in a bear market since 2000. During the subsequent decade there were several short-term rallies that offered trading opportunities but did not change the long-term cycle.

Over time, several brilliant economists objectively noted such cycles. Nikolai Kondratiev was one of these whose work formed the basis for many economists that followed him. Kondratiev discovered that Western Capitalist economies tended to form 50- to 60-year cycles of boom followed by depressions. This study was refined into measureable business cycles that have since been called Kondratiev Waves. The risk that accompanies the ability to spot these types of cycles is that powerful, oppressive leaders fear that the economist may use this ability to threaten their power. Kondratiev suffered the fate of many visionaries. After serving an eight-year sentence in a Soviet prison he was re-tried, sentenced and executed all in the same day.

Some readers will write this off as an action that only an oppressive regime such as Stalin’s Soviet Union could commit. While this thought seems to match up with what was taught in civics class, it deserves further review.8.615384615 * 365.25 = 3146.76923062

This number jumped off the page immediately. It was exactly Pi * 1,000. Pi is a very significant number and throughout the course of history it has emerged in many aspects of human life. The number is a mathematical constant and represents the ratio of a circle’s circumference to its diameter. The history of this strange number sequence dates back as far as 2,000BC. Several instances of its use are recorded in ancient Egyptian history.
If Pi was so relevant in geometric structures, especially circles, then logically there was a connection to these cycles. Armstrong determined that the cycle would include two 4.3 year parts. Each of those parts would include a 2.15 year rise to a crest and similar 2.15 year return to the mean. Six 8.6 year cycles would form a larger 51.6 year cycle connecting with Kondratiev’s findings earlier that century. Then, six 51.6 year cycles connect to form a 309.6 year super cycle. With these findings algorithms correctly predicted the 1987 US stock market crash, the 1989 all-time Nikkei high, the Russian sovereign debt crisis and the peak of the housing boom.

Humans seek certainty and are constantly searching for a linear path through life when none exists. What intelligent economists realize is that the Pi model predicted shifts in energy. These energy shifts could be characterized as turning points. At times they predicted events to the day but more importantly they predicted when the tide would begin to move in another direction. In the chart displayed above this would represent the red line or the long-term trend.

The video below briefly describes one very small piece of the cycle change indicator we utilize.

Understanding trends and noticing cycles is critical in the context of investing. Getting stuck in the short-term blue line can distract you from the long-term trend. In other words, using buy and hold you would have been stuck losing half of your money twice during the 2000’s, where our members avoided the vast majority of those declines as you see in the chart below:

Nearly all significant investment profits are realized when trading with the major Pi trend. Just merely understanding that there are cycles in every aspect of an economy is an acceptable first step. Only then can you realize that the most inefficient investment philosophy is buy and hold.

The illustration below visually clarifies out entry and exit arrows above that protects and grows your money more efficiently.

The InterAnalyst Logo is designed Around Pi

Stock markets grows and contracts based on Pi and it is built into our algorithm which is historically deadly accurate at preserving and building your retirement.  InterAnalyst keeps your retirement account protected and growing efficiently at up to 8 times faster than buy and hold.

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