Introducing a Fundamentally New Approach to Investing
The world of investing is about to change at a fundamental level. The National Association of Online Investors (NAOI) is preparing to release a new approach to investing called Dynamic Investment Theory (DIT) that is at the very least a viable alternative to Modern Portfolio Theory (MPT) and at the most a complete replacement.
DIT creates a revolutionary, new investment type called Dynamic Investments (DIs) that automatically change the equities they hold based on a periodic sampling of market trends. This makes them "market-sensitive" and able to produce returns that static, MPT portfolios can't touch with less risk and no active management required. This is the development that will finally get the world of investing unstuck from the MPT "mud" and evolving as it must to adapt to modern markets.
The purpose of this Web page and of this Media Center section of the NAOI site is to give select members of the financial media a pre-release "first look" at this new investing approach in order to enable them to break this news to their audiences first, prior to a major, nationwide NAOI press release.
Allow me to introduce myself as Leland Hevner. I am the President of the National Association of Online Investors (NAOI). Founded in 1997 the NAOI is an established investor education and investment research organization located in Tampa, Florida.
Since 1997 the NAOI has taught thousands of individuals how to invest via our online courses, college-level classes and published books. Then, in 2008, I stopped all NAOI education efforts. Why? Because what I was teaching wasn't working.
For over a decade I had been teaching investment portfolio design based on Modern Portfolio Theory (MPT) methods - using asset allocation to match each student's risk tolerance. During a college class I was conducting in 2008 the stock market started to crash and I watched in dismay as the portfolios I was showing my students how to create were crashing right along with it.
At that point, I cancelled all future college classes and refocused NAOI resources on developing a new approach to investing in general that did work in today's markets; one that I could feel confident teaching.
Why Change Is Needed
As we started our research, I quickly saw that at the root of the problems facing investors today is the universal use of Modern Portfolio Theory (MPT) to design portfolios. This is a methodology introduced in 1952 . Click the chart at right to see the MPT problem (and the DIT solution that you will learn about on this site).
While markets have change dramatically since the 1950's, MPT has barely changed at all and it simply no longer works in modern markets. Yet we are still, today, given MPT-based portfolios by the financial services industry, resulting in investors having to accept mediocre returns, at best, excessive risk and no protection from market crashes..
MPT methods, by focusing their design on the risk tolerance of each investor, have no sensitivity to market changes. As a result, their value drifts up and down at the whims of the market. This is unacceptable in today's volatile markets and the reason why many individuals are not participating in, or taking full advantage of, the market today. Total reliance on MPT portfolio design is keeping the world of investing "stuck" in the 1950's. Having identified the root of the problem we started a development effort to create an investing approach that works in the 21st Century.
The NAOI Study and Findings
To develop an updated theory of investing we used rigorous scientific methodology, starting with the ONLY thing we know about market price movements with any degree of confidence - this being that the prices of assets, markets and market segments are all cyclical in nature and that they move up and down at different times.
Starting with this foundation of logic, we formulated a hypothesis that a portfolio, or investment type, could be created that was capable of automatically detecting positive price trends where ever and whenever they exist in the market and capturing their positive returns while avoiding areas of the market trending down in price.
Extensive testing and analysis showed us that our hypothesis had a high probability of being correct. With these results we transformed our hypothesis into a theory and, after close to 5 years of R&D, Dynamic Investment Theory was born. DIT sets forth the logic and rules for the creation of a new investment type we called Dynamic Investments.
With the introduction of DIT and Dynamic Investments, virtually overnight, the world of investing becomes significantly simpler, more profitable and less risky. NAOI students who have been field-testing the use of Dynamic Investments for close to two years tell us, almost without exception, that DIT - not MPT - is the future of investing.
In this Media Center Web Section
In this Media Center section of the Web Site you will find the following Web pages that you can access by clicking the links below or by clicking links in the "Media Center" navigation submenu at the top of this page:
- Dynamic Investment Cheat Sheet - Here you will find a short explanation of what NAOI Dynamic Investments are, how the work and the amazing performance they can produce.
- Potential Articles / Interviews - This page suggests multiple media articles or interviews related to the introduction of Dynamic Investments. They will give members of the media options for choosing the topics that they believe will interest their audience the most.
- Leland Hevner CV - Here you can learn more about NAOI President Leland Hevner.
- About the NAOI - Here you can learn about the National Association of Online Investors.
- NAOI Media Contacts - Here you will find multiple ways for contacting Leland Hevner at the NAOI.
We believe that DIT and DIs represent the future of investing. We believe that your audience will benefit by being among the first to know what is coming - and fast.