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. Just a few are listed below. These benefits, and others, are described in detail in the White Paper now available to you. After reading it you will be able to easily and quickly take advantage of each.

DIs enable:

1. Higher returns without higher risk

Modern Portfolio Theory (MPT) says that higher returns come only with higher risk. Dynamic Investment Theory (DIT) disagrees as discussed in Section 4 of the White Paper. By taking advantage of the powerful predictive power of market trends, Dynamic Investments are capable of producing higher returns with lower risk! DI annual returns of 15%+, in both Bear and Bull markets, are not uncommon and losses in any one year are rare.

2. 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, DIs provide investors with higher returns as well as absolute protection from significant market losses. This benefit, alone, will bring thousands of individuals into the market who are now on the sidelines in fear of holding static MPT portfolios in modern volatile markets.

3. Trade decisions based on objective observations of market trend data

DIs automatically signal trades based on objective observations of market trend data. This eliminates a massive risk element related to the subjective human judgments used for making trade decisions today. Fear, greed, incorrect analysis and inappropriate trades are not factors when working with Dynamic Investments.

4. The creation of portfolios with FOUR diversification elements

The high returns, with low risk, of Dynamic Portfolios is due, in large part, to the use of FOUR diversification elements. MPT portfolios use two diversity elements - Company diversity and Asset Class diversity - to reduce risk. Dynamic Portfolios add two additional diversity elements in the form of Time diversity and Management Strategy (buy/sell and buy/hold) diversity, for a total of four diversification 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 DPorts, reduce risk and enhance returns.

5. The ease of new DI product creation

DIs are easily created by simply combining existing ETFs in the DI configuration as shown at this link. This benefit eliminates the massive amount of time, effort and expense related to creating new mutual funds and ETFs. An entire product line of powerful DIs and Dynamic Portfolios can be created by readers of the NAOI White Paper with minimal time, cost and effort,

6. For ETF Developers - Uncovering massive value currently lying dormant in an existing ETF Product Line

As stated just above, DIs are created by simply combining existing ETFs in the DI structure. Only the one ETF trending up most strongly at a periodic Review event is purchased, or retained if already owned, and held until the next Review. And, as illustrated in the diagram below, the DI will produce returns that are significantly higher than either of the standalone ETFs used.

By “monetizing” ETF combinations, Dynamic Investments enable the creation of an unlimited number of new Dynamic Investments and by doing so uncover massive value in existing ETF product lines that is currently lying dormant.

7. The “Productization of Investing”

Dynamic Investments can be seen as the market’s first “portfolio products”. 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 plan that automatically signals trades based on objective observations of market trends. No subjective decisions are involved. Thus, DIs can be sold off-the-shelf, directly to the public, by a variety of vendors. And buyers simply hold them for the long-term, responding to automated trade signals as needed. The “productization of investing” is the Holy Grail of the financial world. The White Paper shows how DIs enable it to happen.

8. The creation of a Universal Portfolio that works for all investors with no customization needed

The NAOI Universal Portfolio, described in detail in Section 8 of the White Paper, is one example of a very effective portfolio product. This is a simple, but powerful, portfolio that all investors can profit from owning. It produced an average annual return of close to +20% annually for the period from 2008-2021, with minimal risk. It is also the perfect default portfolio for 401(k) and all other retirement plans where frequent trading is not penalized by short-term capital gains. Organizations that offer the NAOI Universal Portfolio will dominate the trillion-dollar retirement industry.

9. The use of DIs to enhance the performance of today’s MPT portfolios

It is not the purpose of the NAOI to replace MPT with DIT. The two approaches to portfolio design and management work well together. DIs can be used as building blocks in MPT portfolios where they both boost returns and reduce 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.

10. The opening of a vast new world of superior product development and more effective investing solutions using scientific methods

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 the portfolio design and management 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 Dynamic Investments and Portfolios can be taught with scientific rigor. The design of MPT portfolios cannot.

11. Safely enabling the use of High-Return, High-Risk ETFs in conservative portfolios

There are scores of ETFs available today that track indexes or equities that have the potential for exceptionally higher returns. But these ETFs are too risky to place in today’s by-and-hold portfolios so their sales are usually quite small. What if a portfolio could be designed that captured the high returns while greatly reducing the high risk? The sales of these ETFs would sky-rocket. Well, this is exactly what Dynamic Investments do. They buy this type of ETF only when it is trending up and quickly sell it when it begins to trend down. As a result, even the most conservative portfolio can safely take advantage of the high returns of these ETFs without being exposed to its high risk. You will learn how in the White Paper

The Advantages of Thinking Differently!

This above list just scratches the surface of the benefits resulting from the use of Dynamic Investments and Dynamic Portfolios. It is presented to demonstrate the fact that 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 “ticket” to enter this simpler, higher return and lower risk era of investing comes in the form of the NAOI White Paper that is now available to you.