Below are listed just a few of the benefits that the use of DIs provides to both investment buyers and sellers. These are the unique features that will give to any advisor who offers Dynamic Investments and Dynamic Portfolios a massive competitive advantage in the crowded field of financial services. More details related to each of the benefits in the list are found in the NAOI White Paper.

1. Higher Returns - DIs consistently produce returns that are higher than virtually any buy-and-hold MPT portfolio, in all economic conditions. Average Annual Returns of 20%+ per year, in both bull and bear markets, are not uncommon. You saw an example of this performance level at this link.

2. Lower Risk - DIs use risk reduction factors that MPT does not. Among these are a new diversification element that we call “time-diversification” arising from the fact that DIs periodically review the price trends of their ETF purchase candidates and buy, or hold if already owned, the one that is trending up most strongly in price.

3. Absolute Protection from Market Crashes - DIs periodically sample the price trend of the ETF owned. If it is trending down it is automatically sold and replaced with an ETF that is trending up. As a result, rarely does a DI lose money in any year, no matter how “bearish” the market is. This benefit alone will bring a massive number of people into the market who are currently on the sidelines in fear.

4. A Comprehensive Investment - DIs can be viewed as standalone investments or as complete portfolios. As discussed at this link, each DI specifies the ETFs to work with as well as when trades are to be made. As a result, investors can buy and hold them for the long term, knowing that their DI is constantly monitoring the market and automatically making trades to either capture gains or to avoid losses.

5. Elimination of the “Human Risk” Factor - DIs make trades based on objective observations of market data with no subjective human judgments involved. In contrast, MPT portfolios make trades based on risky human judgments - a factor that is the source of so much that is wrong with the way investing works today.

6. A Simpler, More Effective Equity Selection and Purchase Process - Using MPT methods, advisors must select specific equities to populate each asset type held in a portfolio. And bad choices made here can have long-term negative effects on a portfolio’s performance due to the buy-and-hold nature of MPT portfolio management. In contrast, DI designers select a group of ETF purchase “candidates” to place in the Dynamic ETF Pool (DEP). The DI’s built-in trading system then determines which ETF to purchase and hold until the next Review Period based on objective observations of market data. Thus, while the NAOI agrees that individuals can’t “time” the market with any degree of success, the “market”, itself, can.

7. Easy and Inexpensive to Create - DIs are easily created by simply defining values for the DI components listed at the top of this page. Thus, little time, cost or effort is required to create a complete product-line of high-performance DIs for a full range of investing goals. Compare the ease of creating DIs to the cost, time and effort of bringing just one new ETF or Mutual Fund to market - an action that can cost between $100,000 and $200,000 each.

8. Instantly Increasing the Value of an Existing ETF Product Line - If you own, or work with, an existing ETF product line, odds are good that you are not taking advantage of its full value. In the White Paper you will learn how Dynamic Investments uncover massive value that is currently lying dormant in an ETF product-line by monetizing ETF combinations. Below is a simple example that illustrates this value-added benefit of DIs.

You will learn in the White Paper that by rotating between owning the Stock ETF and the Bond ETF based on a periodic review of the price trend of each, Dynamic Investments create value that is not currently being exploited in an existing product line of stand-alone ETFs.

9. Enhancing the Performance of MPT-Based Portfolio Products - It is not the intent of the NAOI to replace MPT with DIT. Section 7 of the White Paper shows how DIT and MPT methods can work together quite nicely in the form of NAOI Dynamic Portfolios (DPorts). DIs can be used as building blocks in any MPT portfolio, They will both increase its returns and lower its risk! As a result, financial organizations can take full advantage of the power of DIs immediately without interruption to current MPT-based operations.

10. The NAOI Universal Portfolio - The world of investing suffers from the lack of a “universal” portfolio that works for all investors regardless of their risk profiles. Such a portfolio is not possible using MPT methods that dictate that portfolios be customized to match the risk tolerance of each investor. But what if a portfolio existed that had the goal of maximizing returns while minimizing risk in all economic and market conditions? This is a universal goal that works for all investors, regardless of their risk tolerance. DIT provides the methods and tools to create just such a portfolio and the NAOI has done so with the creation of the NAOI Universal Portfolio. Its configuration is shown just below. This creation of a universal portfolio that works for all investors will usher in an era of simpler, more profitable and less risky world of investing.

This asset allocation of this Universal Portfolio will automatically be “biased” toward the asset class that is trending up - e.g. 80% Stock when the stock market is moving up and 70% Bond when the stock market is trending down. This portfolio uses an astounding FOUR elements of diversification as follows: Company, Asset Class, Time and Methodology (buy-and-hold and buy-and-sell)! The Average Annual Return for this portfolio was +17.5% for the period from the start of 2008 to the end of 2020. No MPT-based portfolio has produced returns that even come close to this for the same time period.

11. Lowering the Stress of Investing - The NAOI knows, based on 20+ years of teaching individual investing, that far too many people who need investment income are avoiding the market today because they are advised to simply hold their portfolios in the face of serious market corrections and crashes. And the stress of watching their portfolio value melt away is just too much for many investors to mentally and emotionally handle.As a result they too often sell their equities at the worst possible time. Owners of DIs and Dynamic Portfolios do not experience this stress. They know that their DIs are constantly monitoring the market and automatically signalling trades to take advantage of areas of the market that are trending up while avoiding those that are trending down. This protection of portfolio value from market crashes will bring millions of individuals into the market who are now on the sidelines in fear.

DIs Enable Uniquely Effective Investing Solutions and Strategies

The unique benefits provided by DIs as listed above enable profitable investing solutions that are not possible today. Following are just a few.

12. Enabling the Productization of Investing - The world of investing will be completely revitalized when investment portfolios can be designed, sold and managed like “consumer products”. DIT methods enable this to happen. They have the universal goal of maximizing returns while minimizing risk in all economic conditions - This is a goal that works for all investors regardless of their risk profile so no customization for each individual investor is needed. And since changes to these portfolios are made automatically by its built-in trading plan, management can be easily automated. Thus, they can be sold “off-the-shelf” from a variety directly to the investing public and their performance will put virtually any existing investment type or MPT portfolio in existence today. As a result, Dynamic Portfolios can be seen as the market’s first consumer portfolio products.. This is the Holy Grail of the financial world. Experts have been searching it for decades. They haven’t found it. The NAOI has. You will note that the NAOI Universal Portfolio discussed in point 10, above, is one example of a portfolio consumer product.

13. Opening New Markets for Investment Sellers - When investment portfolios become consumer products - having a universal goal and automated management - vast new markets open to advisors and to portfolio sellers. They can be sold directly to the public in conjunction with minimal education material and support by the NAOI or sellers trained to do so by the NAOI. Another massive market that will be opened by “off-the-shelf”, high performance portfolio products includes millions of individuals who cannot afford professional help or have a net worth that advisors deem to be too low for their attention. Selling what are essentially “portfolios in a box” will become a very profitable industry in the future of investing for those who begin preparing for it first.

14. Dominating the Retirement Account Market - The world of investing today suffers from the lack of a powerful default portfolio for retirement plans. The use of Target Date Funds for this purpose is not close to being optimal - they allocate more money to low-return bonds as workers near retirement, a time when they need more income. The NAOI has created a far superior solution that we call the NAOI Universal Portfolio. It is a “portfolio product” as discussed in point 10, just above, that is the same for all investors as it has a universal goal of maximizing returns while minimizing risk. And extensive testing has shown that it provides returns far higher than Target Date Funds with significantly lower risk. The White Paper shows how any financial organization that offers it will dominate this multi-billion dollar industry.

15. Evolving the Role of Financial Advisors- With the introduction of DIT and DIs, advisors will spend less time, effort and expense devoted to the very subjective effort of creating customized portfolios for each investor. Advisors can simply select from a set of optimized DI portfolio products created by the NAOI and/or organizations who have been trained to create them by the NAOI. As a result, advisors will be able to spend more time providing clients with Financial Planning assistance - an essential component of successful investing that is not given the attention it deserves today.

DIs and DPorts: A Massive Competitive Advantage

These are just a few of the benefits provided by the use of NAOI Dynamic Investments that MPT portfolios don’t. They usher in an entire new world of simpler, higher return, lower risk investing. This is why any financial advisor or organization that offers them will hold a significant competitive advantage over those who remain content offering only 1950’ era MPT-based portfolios.

Getting Started and Working with the NAOI

Your starting point for gaining this advantage is reading the White Paper that can be accessed on this page. (Or simply close this browser tab). Then strongly consider a cooperative effort with the NAOI. We have been working with DIs for over three years, constantly modifying their structure and use based on input from focus groups of individual investors who are NAOI students. We know what works and what doesn’t. We know what the public will buy and what they won’t. Based on this information we have created a complete DI creation and support system and a marketing plan that we know will attract clients.

Can you create an effective DI product line on your own. Yes, after reading the White Paper. But to take maximum advantage of the benefits that DIs provide and to bring them to market much faster, you will be well advised to work with the NAOI.