Examples of Dynamic Investment Benefits
The introduction of Dynamic Investments will have a profound and positive effect on all virtually areas of the investing world. Here are just a few examples:
For Individual Investors
Dynamic Investments meet the goals of the investing public as discussed at this link. By doing so they will enable thousands, if not millions, of people who are currently on the sidelines in fear, to enter the market with confidence and without fear. They do this by producing higher returns, lowering risk and providing absolute protection from market crashes via the simple use of trailing stop loss orders. And since DIs make trades based on the objective observation of market data instead of subjective human judgments, the risk of falling prey to investing fraud, scams, sales bias an all manner of investor abuse is virtually eliminated. These are the things that potential investors fear the most. The DIT approach and use of Dynamic Investments virtually eliminate each.
For the Financial Services Industry
Financial organizations should not fear the changes discussed on this site. By providing higher returns, lower risk, lower expenses and absolute protection from market crashes, any organization that includes Dynamic Investments in their offerings will capture the business of scores of new investors. As a result they will open new revenue streams without disrupting current ones and gain a massive competitive advantage over those that decide not to update and upgrade their offerings. The NAOI stands ready to show the financial services industry how as explained at this link.
Specific Application Benefits
For Portfolio Designers
Today's portfolio designers have the incredibly difficult job of trying to predict which areas of the market will rise in price and then select one ETF or Mutual Fund from dozens of equities that track these areas. This problem goes away with the use of Dynamic Investments. Using DIs, portfolio designers identify groups of ETFs (or Funds) to place in the DI’s Dynamic Equity Pool and then let the market decide which to buy based on a periodic sampling of price trends. And historical performance data shows that the market is far more capable of signaling profitable trades than any analyst or market “expert”.
For Portfolio Managers
Today’s MPT-based portfolio managers have an equally difficult a job as do designers. They must decide when to rebalance a portfolio to maintain original asset allocations and when to change portfolio holdings to either capture more gains or to avoid losses. Using DIT management methods these problems go away. DIT provides a firm set of portfolio management rules for when to review the portfolio and what trades to make to take advantage of current market trends. And these rules can be computerized so that portfolio management is completely automated. With DIT there is no “guessing” about when to take action and the type of actions to take.
For Financial Advisors
Dynamic Investments are essentially portfolio “products”. They do not need to be customized for each individual’s risk tolerance. Thus, financial advisors will be able to select optimized Dynamic Investments that they feel are appropriate for meeting client goals from catalogs produced by the NAOI, ETF developers (see below), and/or other DI designers . As a result of this greatly simplified portfolio design and management process, advisors are able to free up time that can be better used to provide other valuable services such as financial planning - a benefit that the NAOI desperately needs. By doing so advisors who offer DIs gain a massive competitive advantage in a crowded field.
For ETF Developers
ETF developers will benefit significantly from the introduction of Dynamic Investments. DIs enable them to create a full product line of powerful Dynamic Investments virtually overnight with little effort or expense by simply combining existing ETFs using the Dynamic Investment structure. By doing so ETF developers are able to “monetize” ETF combinations and uncover massive hidden value currently lying dormant in an ETF product line.
For 401k Plan Users and Providers
Dynamic Investments are the perfect “default” investment type for Retirement Plans of all types. Their buy-and-sell management strategy does not incur a higher tax rate as retirement plans are tax-deferred. And as discussed at this link, the NAOI Market-Biased Portfolio delivers higher returns with lower risk than any MPT portfolio or “target-date” fund in existence. In addition, because all trades are made based on objective sampling of market price trends, the entire management process can be automated.
For Discount Online Brokers
When the public learns about the simplicity and performance of Dynamic Investments they will want to take advantage of them. People will have two choices for doing so - by working with advisors who offer DIs or by investing on their own using an online Discount broker. DIs are comprehensive, “plug-and-play” investments that are so easy to implement and manage that with their introduction, a new breed of self-directed investor will be emerge. Online brokers who offers to automate the simple rules for managing DIs as a part of their trading platform will capture this audience that could number in the millions. The NAOI can show these organizations how via a consulting agreement or an NAOI Partnership as discussed at these links: Consulting and Partnerships.
DIs Provide a Massive Competitive Edge
These are just a few areas and applications that will be greatly enhanced by the use of Dynamic Investments. DIs will bring millions of new investors into the market. Only organizations that offer them will be able to capture this new client base. The NAOI can show you how via NAOI Support services discussed at these links. Consulting and Partnerships.