By stepping outside of the MPT “box” and embracing an objective, buy-and-sell strategy using the predictive power of market price trends, DIs enable a vast array of investing benefits that are not possible today. A list of how they will benefit various areas of the financial and investing world are shown below. Each is discussed in more detail in the White Paper that is now available to you.

How and Why Dynamic Investments Work

Before discussing the benefits of DIs here is a very brief illustration of how they create investments that are superior to any in use today. Details are provided in the White Paper

There are four major components of the Dynamic Investment Structure as shown in the above diagram. They are as follows:

• DEP

• Period

• Trend Indicator

• ETF Held for One Period

Universal Benefits of Using DIs

These DI benefits affect all of the groups discussed below.

Higher returns without higher risk

MPT says that higher returns come only with higher risk. DIs show that this is not true. DI annual returns of 20%+ in both bear and bull markets are not uncommon and losses in any year are rare. This is made possible by using the predictive power of market trends; a valuable indicator that MPT ignores.

The “Productization of Investing”

Dynamic Investments can be seen as the market’s first “portfolio product”. They have as their goal maximizing returns while minimizing risk in all economic conditions (bear and bull). This is a universal goal that works for all investors with no customization needed. Plus, DIs are comprehensive investments - they specify the ETFs to work with and have a built-in trading system that signals trades based on objective observations of market trends; no subjective human judgments are needed to manage them. Thus, they can be sold, off-the-shelf, directly to the public by a variety of vendors. The “productization of investing” is the Holy Grail of the financial world. The White Paper shows how DIs make it happen.

A Universal Portfolio

The NAOI Universal Portfolio, described in detail in the White Paper, is one example of a portfolio product. This is a simple but powerful portfolio that all investors can profitably hold as a “starter” portfolio. It has shown an average annual returns of +20% annually with minimal risk for the period from 2008-2021. It is also the perfect default portfolio for all Retirement Plans. Organizations that offer it will dominate this trillion dollar industry.

A Portfolio Performance “Benchmark”

The world of investing today suffers from the lack of a universal performance benchmark. As a result, investors have no way of knowing if the portfolio they own is good, bad or mediocre. With the introduction of Dynamic Investments, this benchmark IS possible in the form of the Universal Portfolio discussed just above. This is a simple “dynamic” portfolio using only 2 ETFs that is market-sensitive, capable of automatically changing its allocations based on the price trends of Stocks and Bonds. Any portfolio that produces lower returns with higher risk than the Universal Portfolio - that requires no active management - must be seen as inferior.

The Benefits of Using DIs In Targeted Areas of the Market

The following list shows how DIs will enhance the performance of specific areas of the market and give a major competitive advantage to those that offer this new approach.

Benefits for ETF Developers

Increasing the Value of Existing ETF Product Lines - Virtually Overnight

Dynamic Investments are created by combining existing ETFs in the DI structure. The White Paper shows how by combining two ETFs in the DI format, the Dynamic Investment produces returns far higher than each standalone ETF. And the new DI can be used as a complete portfolio or as a building block in an MPT portfolio. As a result DIs uncover massive value that is currently lying dormant in current ETF product lines by Monetizing ETF Combinations. The diagram below illustrates how easy it is to create an almost unlimited number of powerful DIs by simply placing existing ETFs as “purchase candidates” in the DI structure.

It is worth noting here that by adding one more carefully selected and tested ETF to the purchase candidates list increases returns of the DI created to an average annual return of + 25.1 %. You will learn what this ETF is in the White Paper.

Benefits for Financial and Investment Advisors

Create Your Own DIs

As advisors you wouldn’t think of creating your own ETFs and Mutual Funds. But you can easily create your own DIs that will outperform virtually any investment type in existence today. As mentioned above, you do this by simply combining existing ETFs in the DI format. The White Paper and NAOI consulting shows you how.

Creating “Market Sensitive” Investments with FOUR Diversification Elements

MPT portfolios utilize Company diversity and Asset Class diversity. Dynamic Investments add Time diversity and Management Strategy (buy/sell and buy/hold) diversity, for a total of four diversity elements. And while Company and Asset Class diversity, used by MPT, both reduce risk and reduce returns potential, Time and Management Strategy diversity, used only by DIs, reduce risk and enhance returns.

Enhancing MPT Portfolios with DI Building Blocks

When used as building blocks in MPT portfolios, DIs both boost their returns and reduce their risk in all economic conditions. As a result the benefits of DIs can be used immediately to increase the performance of existing portfolios without significant disruption to current operations. These portfolios add a fifth diversification element that we call

Opening a Vast World of More Effective Investing Solutions

DIs enable financial advisors and investment developers to create uniquely powerful and effective portfolios using scientific methods; eliminating the subjective, human “guesswork” that is an integral part of portfolio design today. As a result the creation of highly effective portfolios can be taught to students at all levels of academia - unlike the MPT methods used today that are heavily dependent on estimates, projections and opinions. In other words, the design of powerful DI-based portfolios can be taught with scientific rigor. MPT portfolios cannot.

Benefits for Portfolio Managers

Dynamic Investments are unique in the investing world. They can be used as single investments such as ETFs or mutual funds or as complete portfolios as illustrated by the Simple Portfolio found at this link. When one or more DI is used to construct a complete portfolio, as opposed as a building block in an MPT portfolio as discussed just above, the following benefits are enabled.

Trade decisions are automated and based on objective observations of market trend data

DI trades are based on objective observations of market data. This eliminate a massive risk element related to the subjective human judgments used for making trades today. Fear, greed and incorrect analysis are not a a factor the DI trading process. In fact very little portfolio management is required as trade signals are generated automatically and trades can be automated.

Elimination of the Rebalancing Task and Its Problems

The goal of all DIs is to maximize returns while minimizing risk in all economic conditions. This is a universal goal that works for all investors regardless of their risk profile. Thus the difficult decisions related to rebalancing a portfolio to return to original allocations that match an investor’s risk profile are not needed when working with DIs.

Benefits for Targeted Areas of the Market

Dominating the 401(k) Market

Dominating the Less-Affluent Investor Market

Benefits for Investors

The above list shows how the financial services industry will benefit from the introduction of Dynamic Investments and Portfolios. The following list shows how investors (both Retail and Institutional) will benefit from this new approach to investing.

Higher Returns with Lower Risk than the MPT Portfolios they are Given Today

Simple and Transparent

Far too many investors today don’t understand the investment they own and the processes used to trade them. As a result they can easily be sold inferior products and subjected to inappropriate trading. DIs are so simple to understand and trading is automated that investor will know exactly what they own and why trades are made with minimal education. This benefit will protect individuals from inferior advisors as well as outright fraud.

Absolute protection of portfolio value from significant losses

By striving to purchase ONLY uptrending equities while avoiding, or quickly selling those that are trending down, this benefit will bring thousands of individuals into the market who are now on the sidelines in fear of the significant risks related to owning the static, buy-and-hold MPT portfolios that they are offered today. When an ETF held by a DI begins trending down significantly it is sold before significant wealth is lost. The DI then reenters the market at a periodic review buying an ETF that is trending up in price.

A Viable DIY Option

Since DIs can be used as total portfolio “products”, individuals will be able to purchase them from a variety of vendors and manage them on their own using an online broker and the “NAOI Dynamic Investment User’s Manual” that will soon be released. It is currently shown in the NAOI store as “coming soon”. When individuals can use DIs to produce returns higher than their advisors, the world of investing will be forced to take notice of this new approach to investing.

Academia

A new field of study that the NAOI calls “portfolio design science”.

This can be taught

The Advantages of Thinking Differently!

When the financial services industry finally steps out of the “MPT box” and begins thinking differently about how portfolios can be designed, managed and used, the world of investing changes at a fundamental level; and for the better. Your entrance to this simpler, higher return and lower risk era of investing starts by reading the NAOI White Paper that is now available to you.