Designing a Better World of Investing
Welcome to the Web site of the NAOI Investing Research Center. Formed as a Division of the National Association of Online Investors (NAOI) the mission of the Research Center is to empower the investing public through the development of innovative investing methods, superior investment types and more effective investor education. The goal is to create a more user-friendly environment in which investors are smarter, investing methods are simpler and portfolios are more profitable with less risk.
Spend some time reading the material on this site. If you do, you will be rewarded with a glimpse of the Future of Investing - and it is amazing!
What You Will Learn On This Site
Below are the main areas of information that you will find on this site. Each plays a critical role in building a better future of investing. Click any picture to go to the area of the site where the related topic is discussed.
The mission of the NAOI is to empower individuals to become more confident and successful investors. This will only happen when individuals are capable of taking greater personal control of their financial futures and reducing their dependency on financial "experts" who are too often salespeople first and advisors second. To do this, the NAOI Investing Research Center is established to create innovative investing methods and unique investing products that are far simpler than those used today and that can produce significantly higher returns with less risk and lower expenses. The Research Center is also tasked with improving the state of investor education that today is a miserable failure.
Investor education today is in an odd and dangerous state. The investing world is so complex and dysfunctional that the public must actually seek education and guidance from people who sell them investing products and services. Academia is strangely absent in an area that is such a vital life-skill. A goal of the NAOI is to provide to the public unbiased, comprehensive and actionable investor education. The task of the Research Center in this area is to continually develop new and relevant investor education content as well as innovative methods for delivering it to the public. It is time to start treating personal investing as a legitimate field of study and not as a sales opportunity for the financial services industry.
NAOI Dynamic Investing
Research and Development
Today investment portfolios are designed using an approach called Modern Portfolio Theory (MPT), a methodology that was introduced in 1952. While markets have changed dramatically since then, the methods used by the financial services industry to cope with them have not. At best current investing methods are no longer optimal, at worst they simply don't work and people that use them place their financial security at great risk. The NAOI Research Center is tasked with creating new, simpler, more powerful approaches to investing that are designed to work in current markets. And it does so not with minor "tweaks" to traditional investing methods (such as robo-advisors) but rather with bold strokes that change the core principles of how we invest today.
What if we could start with a clean slate and create a new approach to investing from scratch? Would it look like how we invest today? The answer is a resounding "NO". Given the chance to start over we would not own the static, buy-and-hold portfolios that are universally recommended by financial advisors today. Rather, we would own dynamic portfolios that automatically adjust their holdings in order to own only equities that are trending up in price while selling or avoiding those that are moving down. On this site you will read about NAOI Dynamic Investing Theory and learn how this can be done. You will see that the simplest Dynamic Investment earned an average annual return of 20%+ during the volatile period from 2007-2015 with low risk and minimal expenses!
The Future of Investing
NAOI Products and Services
The NAOI provides a full range of investing products and services to both individuals and the financial services industry. For individual investors we provide education resources and new investing methods that will enable them to become confident and successful investors whether working with an advisor or on their own. For financial organizations we offer Seminars, Classes and Consulting services that show them how to "evolve" their offerings to cope with increasingly volatile markets and to meet the changing needs of the investing public. The NAOI is the only organization that caters to the needs of both the investing public and the financial organizations that serve them. By doing so we are uniquely positioned to create the better "future of investing" you will read about on this site.
Today the average person with money to invest has no power. They are almost totally dependent on financial salespeople to manage their financial futures. In the NAOI's vision of the future of investing, power will shift from the financial industry to the public, creating a more equitable balance. When this occurs the world of investing as we know it goes away and a simpler more profitable world emerges for both individual investors and for financial professionals. In this section of the site you will read about the NAOI vision for a better "future of investing" that defies what today's experts will say is possible. It is a world in which 20%+ annual returns are achievable without excessive risk in any economic condition. It is a world that that will be significantly "evolved" from the one we face today.
Who Should Read This Site and Why
This site is designed to serve two purposes. Certainly it is a marketing site to let the world know that the NAOI and the NAOI Investing Research Center exist. But it is also an information site that tells you why you should care. Two audiences who will benefit by spending time on this site as follows:
Individual Investors - A Reason for Optimism
The NAOI has surveyed hundreds of individual investors who have taken our investing courses. From their input we know that the public is not happy with the way investing works today. We know that many, if not most, have given up on ever being able to understand and take charge of their financial futures. We know that they are resigned to entrusting their financial security to a third party advisor and then just hoping for the best. This is about to change. On this site individuals will learn how the NAOI is creating a new world of investing that will shift power from the financial establishment to the people. It will be a world in which investing is simpler, more profitable, less risky and less expensive.
If you are an individual investor who sees no option but to completely trust an advisor/salesperson with your financial future, you need to spend time on this site. Here you will learn that there are investing options that the financial services industry will not tell you about. There are investing options that put YOU back in charge of your hard earned savings. Regardless of your age or investing experience level, what you read here will give you reason to be optimistic that you can take personal control of your investments to both grow and protect your wealth whether you decide to work with an advisor or on your own. And you will find that doing so is amazingly simple!
Financial Organizations and Advisors - Preparing for Change
Developments coming from the NAOI will change the world of investing in fundamental ways. The financial services industry must be prepared for them. The status quo has a very short life-span. The individual investor of the future will be much more formidable and demanding than the passive, trusting client of today and to meet their demands the financial industry must change.
Via NAOI education resources, individuals will become aware of the new investing methods and investment types that we are developing. They will know that portfolios built based on NAOI Dynamic Investment Theory can produce higher returns with less risk and lower expenses. As such, the client of the future will demand them. In the future of investing if the industry does not meet these demands, individuals will be fully capable of implementing Dynamic Investments on their own or working with an advisor or organization that does. In other words, the power of investing will shift from the financial establishment to the people, where it belongs.
The question for financial organizations then becomes: Will you lead or will you follow when the public demands the better investing products discussed on this site? Those that embrace this change and participate in defining it will thrive and grow as millions of new investors will flood into a more user-friendly market. Organizations that resist change and stick with the traditional, outdated investing methods used today will will lose market share and gradually disappear.
Change does not need to be a bad thing for the financial services industry. It should be seen as an opportunity to better serve their clients. When the public is happier with the products and services that the industry provides, new areas for producing revenues will abound. One goal of the NAOI is to show financial advisors and organizations how to not only survive the change that is coming but how to profit handsomely from it when it arrives!
We invite all parties interested in improving how investing works today to join us in defining the future of investing. To do so, your first action is to sign up for our "Alerts" email list at the bottom of any page of this site. Then we can keep you informed of major NAOI developments, new product releases and additions/changes to this site. Then consider a free Individual or Professional NAOI Membership that will give you additional avenues for participation. Also consider an NAOI Partnership designed to set a format for working with us in a variety of areas.