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Robert D. Taylor’s discovery "Taylor’s Law" and the subsequent forecasts provided on this website are results of many years of research. His research produced an astounding conclusion that proves a predictable structure to financial markets instead of the random behavior which is universally thought to be the accepted standard by econometricians.

In 1996 Taylor solicited the help of other theoretical physicists and scientists to advance his discovery. These mathematicians and engineers are considered to be leading scientists in the field of aerospace control theory systems. Together, Taylor and his group developed and wrote over two hundred programs in the field of time-domain and frequency-domain control systems. The end result was Xyber9, a sophisticated software program that successfully forecasts financial markets. Taylor’s team concentrated their efforts on developing models for the Dow Jones Industrial Average (DJIA); The Standard and Poors 500 index (SPY); the NASDAQ Average; U.S. Treasury Bonds; and currencies.

In March of 2000 Taylor received from a committee of established academicians a proffered Nobel Memorial Prize Nomination in Economics, conditional upon his prior publication of an "enabling disclosure" pertaining to the hitherto unexploited Exogenous Input (Gravitational Fluctuations), which is included in the essay "The Taylor Effect". Taylor will publish his essay as an “enabling disclosure” as part of his novel, Paradigm to be published March 6th 2006 (it will be offered on this website under Products.)

Robert Taylor on his Forecasts

The forecasts produced here are extraordinarily precise. Scholars refer to discoveries like this as ‘The Genuine Article’. It is exciting, it is revolutionary, and it flies against prevailing “knowledge.” Many of you will use my forecasts to your advantage. I have faith in human curiosity, in the inclination of everyday people to conceptualize abstract notions. For those of you who use my forecasts, your lives could become profoundly richer.

I chart the S&P500, (symbol SPY) for my studies, although the DOW (Dow Jones Industrial Average), the NASDAQ and other stock market indexes follow the same predictable patterns. Individual stocks will typically follow the same cycles as the indexes but vary in amplitudes due to other factors, as discussed in the essay, "The Taylor Effect", bonds will typically move opposite the stock market, the dollar will normally move opposite the stock market while the foreign currencies typically move with the American stock markets.

Yearly trends are easily attainable by using the relatively simple process of quantifying astronomical values provided by NOAA algorithms. The monthly and daily trends are another matter. I have written an Aero Space System Identification program to solve the problem, Xyber9.

Besides identifying precise highs and lows in the market, Xyber9 filters 'noise' or anomalies, such as a shock in the market which can cause deviations. During the duration of the expected monthly or shorter term weekly trend, an anomaly can interfere with the known market direction and cause unexpected results to the outcome. Such anomalies that effect shorter term trends can be earnings reports, the PPI, the CPI, unemployment reports, the Michigan Sentiment, Consumer Confidence, interest rate announcements and just about anything in the news that affects human emotions.

However, during yearly trends when an anomaly shocks the market the trends are typically long enough in duration and the amplitudes so great, that the anomaly doesn’t have enough of an effect on the market to cause an unexpected outcome. This includes such shocks as geo-political events, wars, recessions, assassinations or any other traumatic social event.

My studies have included over 85 years of historical stock market data and eighteen years of real-time experience. I was fortunate to work with world-renowned scientists in the field of Control Theory and Systems Identification software. This experience has brought me great insight and, more importantly, an end result; the program called Xyber9. Xyber9 uses astronomical measurements and incorporates stock market data to produce highly accurate monthly and weekly forecasts.

You can find detailed information about the Xyber9 program in the text of my book Paradigm. Visit the web site paradigmbook.com for more details.

In Paradigm I propose and prove a theory that will immediately — and forever — change the way all of us will perceive financial markets. You will be quite surprised and, I hope, very much impressed by a glimpse at this far-reaching discovery concerning the effect of gravity in the analysis and forecasting of economic time series data related to human-influenced phenomena such as those found in publicly auctioned financial markets. My discovery is this:

The Discovery

Taylor's Law

    The financial market’s expansion and contraction is quantitatively in direct correlation to the increases and decreases in gravitational fluctuations experienced at the human level.

    Increases in market price are in direct response to decreases in gravitational forces; and, decreases in market price are in direct response to the increases in gravitational forces.

Theories Deemed Unacceptable
Never- the-less Undeniable

Taylor is certainly not the first to postulate a new theory deemed unacceptable by reigning authorities, like the skeptics who inevitably try to ferret out a version of their own truth. History is filled with characters who endured ridicule, imprisonment, and even martyrdom because they discovered things we know today with absolute certainty to be true. Great discoveries often take not only thinking outside the box, but thinking from outside of the box.

For example, Leonardo da Vinci engineered a plan to divert the Arno River in his beloved Florence from the enemy city Pisa. He later experimented with different designs for human powered flying machines.

Galileo made momentous strides in the study of planetary motion. His passion for the truth brought him before the Church. He endured house imprisonment for the remainder of his life.

Benjamin Franklin was many things including a scientist who just happened to comprehend the power which drives today’s civilization — electricity.

Alfred Nobel invented dynamite. The truth of his discovery contains deep irony, given the fulfillment of his lifetime interests in the pursuit of explosives becoming the Nobel Peace Prize.

Thomas Edison, one of America’s most productive inventors, obtained over 1000 patents. Advocates of the “If it wasn’t invented here, it couldn’t possibly work” theory were silenced.

The Wright Brothers, Wilbur and Orville, are credited with the first human flight. Their theories proved empirically correct, even facing the winds of hard logic and skepticism.

Guglielmo Marconi is the “Father of Radio”. No one imagined that they would witness the wireless transmission of sound but he proved even the most enlightened thinkers of the time wrong.

Henry Ford II turned his grandfather’s floundering automobile company into the second largest industrial corporation the world had ever known.

William H. Gates III, instead of being prized as an industry leader, is ridiculed for his competitive ability to dominate the computer software business. If Bill Gates had been born Japanese, he would be a National Hero.

These discoverers and inventors have much in common. All received their fair share of skepticism from reigning authorities of the time, while each of them discovered the truth. It should also be pointed out that the other common theme shared by these forward-thinking gentlemen is the absence of any advanced degrees. This is the truth!

The Truth

What is true, exactly? And what is the truth, exactly? Leading financial experts and scientist believe the stock market to be a "random walk."

But, the truth is that the stock market is 100% predictable.