Executive Summary

Welcome to a Web page that shows how the National Association of Online Investors (NAOI), the market’s leading supplier of objective investor education since 1997, is changing how investing works at a fundamental level. We are doing so by adding to our education content a unique approach to investing that better meets the needs of the investing public while also increasing revenues for the financial services industry. By reading this page you will get just a glimpse of the future of investing.

A “Dynamic” Approach to Investing

Beginning in the third quarter of 2020, the NAOI will begin teaching a new methodology for portfolio design and management called Dynamic Investment Theory (DIT). DIT defines the logic for the creation of an innovative investment type called Dynamic Investments (DIs). You will learn about both on this Web page.

What are NAOI Dynamic Investments?

Developed by the NAOI based on a multi-year R&D project using extensive input from the investing public, DIs are capable of changing the equities they hold based on a periodic sampling of market price trend data. By doing so, they are capable of producing returns that are significantly higher than MPT, asset-allocation portfolios with lower risk and absolute protection from market crashes. Below on this page you will see how the simplest DI possible, one that rotates only between a Total Stock Market ETF and a Bond Market ETF based on a quarterly sampling of the price trends of each, earned an average return of +24.5% per year for the period from the start of 2008 to the end of 2019. And it did so with far less risk than owning a buy-and-hold MPT portfolio.

Why this Change WILL Happen!

The NAOI is uniquely positioned to influence the investing habits of individual investors. Via our extensive learning channels this new approach will reach thousands of average people with money to invest. And our “Dynamic Investment User’s Guide” that will be available on Amazon and other publishing platforms can reach millions more. When the public learns about the simplicity, higher returns and lower risk of DIs, demand for them will grow. Advisors and financial organizations that offer them will have a massive competitive advantage over those that don’t. Individuals will also be able to implement and manage DIs on their own if they wish. The NAOI shows them how via our DI User’s Manual and then supports their efforts on an ongoing basis.

The Value of Reading the Information on this Page

Dynamic Investment Theory defines a totally new and more effective approach to investing. To it requires more than a series of bullet-points. Therefore this page takes, perhaps, 10 minutes to read - defying all rules of Web marketing. But this is not a marketing/sales page; it is essentially a White Paper showing how the world of investing is about to change in order to enable both investment buyers and sellers to take maximum advantage of modern markets in ways not possible using current investing methods.

Those who learn about this new approach first, and prepare for it now, will benefit the most.

“The Future of Investing Starts Here” is a Registered Trademark of the NAOI.

Introductions

Hello. My name is Leland Hevner. I am the President and founder of the National Association of Online Investors (NAOI) an organization I founded in 1997 with the mission of empowering individuals to invest with confidence via objective education and the use of online resources. Thousands of individuals have taken our online courses, read our published books and/or attended our college classes. As a result, we are a major influencer of how the public invests today.

Based on over two decades of knowledge gained by working with individual investors and in light of modern market volatility we will soon be including in our education content a new approach to portfolio design and management called Dynamic Investment Theory (DIT). It will shape the future of investing.

On this page you will learn why DIT is needed, how it works and why it will bring a massive number of individual investors into the market who are now on the sidelines in fear of the way investing works today.

Why Change Is Needed - NOW

As a leading provider of personal investing education to the investing public, the NAOI interacts with individual investors on an almost daily basis. We teach them, but they also they teach us. What we are learning is that individuals are leaving the market at an alarming rate. Many left following stock market crash of 2008-2009 when they lost a significant portion of their savings. And more will inevitably leave during, or following, the current corona virus crash.

NAOI interviews with individuals who have left the market show that at the core of the problem is the unquestioned use of today’s industry-standard approach to portfolio design called Modern Portfolio Theory (MPT). Introduced to the market in the 1950’s, when markets were a far different place, MPT dictates that portfolios be designed to match the risk tolerance of each investor and then held for the long-term, through all economic conditions. There is no alternative approach offered to individual investors by the financial services industry today.

A major problem with MPT portfolios is that by using a buy-and-hold management strategy they have no sensitivity to market price movements. This makes them dangerously vulnerable to market crashes that occur on an average of about every 6 years. Thus, investors can expect to lose a significant portion of their portfolio value on a regular basis and it can take months or years to recover these losses. Yet, after each crash and resultant portfolio losses, financial advisors offer to clients the same static MPT portfolios that people realize will fail again in the not too distant future. Is it any wonder, then, that many are leaving. or avoiding, the market in significant numbers?

The NAOI Research and Development Project

From our inception in 1997, the NAOI taught MPT methods for portfolio design and management - there were no options. But after watching these portfolios melt-down during the subprime mortgage crash of 2008-2009, I stopped all NAOI education classes and opened the NAOI Research and Development Division to find an alternative approach to MPT; one designed to work in modern markets.

As we planned the R&D project before us, I set three rules.

1. The new approach to investing would be designed based on meeting the needs of the investing public, not based on decades old academic theories as it is today.

2. The development effort must follow strict scientific methods.

3. We would not be constrained by the way investing works today - we would be free to “think differently”; starting with a clean slate.

With these rules in place, we started the research project by seeking an in-depth understanding of the wants and needs of the average person with money to invest.

Starting with Investor Goals

To understand and define the goals of the investing public we conducted extensive interviews with average investors. Fortunately the NAOI is uniquely positioned to do this as we have direct access to hundreds of individuals who are, or were, NAOI students. We simply asked them what they needed to participate in the market with confidence and without fear. In summary form, here are the top three responses:

• Simple - The vast majority of the public today has little understanding of how investing works and this makes them reluctant to expose their financial futures to the risks of equity markets and third party advice. They want a new approach that is logical, easy to understand and simple to work, giving them the very real option of investing on their own if they wish.

• High Returns with Low Risk - Understandably, people wanted higher returns with lower risk than the MPT portfolios they are given today. Many told us that the stress related to investing today is not worth the 3%-5% annual returns they were receiving with the threat of major portfolio losses always looming.

• Absolute Protection from Market Crashes - Of utmost importance to the public was that a new approach to investing provide absolute protection of their portfolio value from market crashes; eliminating a fear that keeps them out of the market today.

It was immediately clear to us that MPT met none of these goals. So we started our research with a blank slate, as if MPT had never existed.

NAOI Design Goals and “Thinking-Differently”

Significant research showed that to develop the new approach required, we needed to make the following fundamental changes to how portfolios are designed and managed today:

1. A Better Portfolio Goal. Today’s MPT portfolios are designed to match a “guesstimate” of each investor’s risk profile. And a low-risk rating greatly inhibits a person’s ability to take full advantage of the market’s wealth creation potential. A better portfolio goal would be to maximize returns and minimize risk in all economic conditions. This is a universal goal that works for all investors regardless of their risk tolerance and the need for customization, and its associated risks, goes away.

2. A Buy-and-Sell Management Strategy. MPT portfolios are meant to be held for the long-term regardless of market price movements. This buy-and-hold management strategy makes portfolios dangerously vulnerable to market crashes. A better management approach would use a buy-and-sell strategy that makes portfolios market-sensitive; capable of detecting and buying into market price uptrends while avoiding market price downtrends and crashes.

3. A Built-In, Objective Trading Plan. MPT provides no guidance for making changes to a portfolio once designed other then, perhaps, a periodic rebalancing to revert to original allocations.Equity purchases and trades for MPT portfolios are thus based on subjective judgments and this injects a massive “human-risk” element into the investing process. A better approach would be to build in to each DI a standardized trading plan that signals trades based on objective observations of empirical market data.

4. Eliminating the “Human-Risk” Factor. To eliminate, or to at least dramatically reduce, the risks related to subjective human judgments in today’s portfolio design and management process, we saw the need to base equity trades on objective observations of market data as discussed just below.

To meet these goals we needed to start “thinking differently” about how investing works. We started with a deep dive into field of equity market Quantitative Analysis.

Taking Advantage of Quantitative Analysis

As we began to explore the massive world of market data analysis, the following question was posed: What do we know about market price behavior with a high degree of confidence? One would think that we know a lot. But we found only three equity price behavior observations that met this confidence criteria. They are as follows, with a related premise:

1. Asset Classes and Market Segment prices are cyclical, moving up and down at regular intervals. This observation leads to the premise that patterns exist in past price movements that have predictive value for future price movements.

2 Asset Classes and Market Segments prices move up and down at different times. This observation leads to the premise that at all times, in any economic conditions their will exist positive returns somewhere in the market.

These two points are illustrated diagram, below; showing that the Stock and Bond asset classes tend to move in opposite directions.

3. Price Trends are persistent - each lasting for an extended period of time - The chart presented below shows that up-trending, Bull Markets, last an average of 14 months and down-trending, Bear Markets, last an average of 14 months.. This leads to the premise that if a price-trend is sampled at relatively short intervals, e.g. monthly or quarterly, the chances of the trend direction detected continuing until the next periodic sampling is high.

Significant testing and data analysis showed to us that each of the above premises was true with a high degree of confidence. This enabled us to create a new approach to investing that we called Dynamic Investment Theory (DIT) that is presented below.

Dynamic Investment Theory

“At all times, in any economic environment, there exist in equity markets areas of uptrending prices. And equities that have moved up in price for a significant time in the past have a high probability of continuing to move up in price for at least a relatively short time period in the future.

A simple, dynamic and internally-intelligent investment type, hereafter referred to as a ‘Dynamic Investment’ (DI), can be created that is capable of automatically finding equities trending up in price and capturing their positive returns potential while also detecting equities moving down in price and avoiding their loss potential. And these actions will be based on observations of historical equity price data with no subjective, human-decisions involved.

It is projected with a high degree of confidence that a Dynamic Investment so designed will be able to produce returns that are consistently and significantly higher than those of virtually any MPT-based portfolio, over the same time period, and with lower risk. It is further projected that Dynamic Investments can be designed that are so simple to understand, implement and manage that individuals of all investing experience levels will be able to take full advantage a DI’s higher performance with minimal education and training required.”

Dynamic Investment Theory Illustrated

DIT is illustrated in the below chart with explanations below..

The vertical lines shown on the top chart represent DI quarterly Review events when it samples the price trends of both a Total Stock Market ETF and a Bond Market ETF to identify the one that is trending up in price most strongly. This is the ONE ETF that it purchases and holds until the next Review event. At the bottom of each Review line is the purchase made with S = Stock and B = Bond. You can see that in Period 4 the ETF price trends changed while the Stock ETF was held. The DI’s value was protected by a Trailing Stop Loss order that sold the Stock ETF with minimal losses and the DI stayed in Cash until the next Review when the Bond ETF was purchased in Period 5.

The bottom graph shows the value of the DI over the time period shown. You can see that DIs are designed to go up in value at all times in all economic conditions. The upward value trend in this example is only interrupted temporarily, in holding period 4, when the asset classes reversed their trend in response to changes in the economic environment. No human, subjective judgments are involved in signaling trades.

The Anatomy of Dynamic Investments

Using DIT logic, the NAOI was ready to translate theory into practice by designing a new investment type that we called Dynamic Investments. Our goal was to make price-trend following methods simple, effective and safe. We accomplished this goal with the DI design discussed below. An unlimited number of Dynamic Investments can be created using this standardized design to meet a full spectrum of investing goals. But regardless of the goal targeted, all DIs have the same components and structure as illustrated in this diagram.

Here is the description of each DI component:

1. Dynamic Equity Pool (DEP) - This is where a DI designer places two or more ETFs (or mutual funds) that are “candidates” for purchase by the DI at a Periodic Review event as described next.

2. Review Period - This is how often the DI ranks the ETFs in the DEP to find the one having the strongest price uptrend. The “winner” is the one ETF purchased, or retained if already owned, and held until the next Review event.

3. Price Trend Indicator - This is the technical indicator that NAOI testing has shown to be the most effective for ranking the ETFs in the DEP by strength of upward price trend.

4. Trailing Stop Loss Order- A Trailing Stop Loss order is placed on each ETF purchased by the DI to protect its value from sudden and significant price drops during the short holding period between Review events.

Each of these components is a variable that is defined by a DI designer to meet specific investing goals. The NAOI teaches classes on the art and science of DI design and also offers a catalog of optimized Dynamic Investments for a full range of investing goals as discussed at this link.

The Performance of a Simple Dynamic Investment; 2008-2019

The table below shows the historical performance of an extremely simple DI that holds only a Total Stock Market ETF and a Total Bond Market ETF in its Dynamic Equity Pool. The DI reviews the price trends of each ETF on a Quarterly basis and purchases, or retains if already owned, the ETF having the strongest price uptrend for the past Quarter. Shown in the table are the Compounded Annual Returns for the DI compared to those of a generic 60% Stock / 40% Bond, buy-and-hold MPT portfolio. Average annual returns and the Sharpe Ratio for the entire period are shown in the bottom two rows.

During this period, the Dynamic Investment held the Stock ETF for 1945 days and the Bond ETF for 1076 days. Trades were signaled based on objective observations of empirical market data, with no human judgments involved.

Note that the DI made exceptional gains during the market crash of 2008-2009 by switching its holding from the Stock ETF to Bond ETF at the beginning of the crash and then back to Stocks when the market recovery began.

Dynamic Portfolios: The Investment Vehicle Recommended to NAOI Students

While a single DI, such as the one used in the example above, can be the only investment in a portfolio, the NAOI knows that allocating 100% of an investor’s money to one ETF at a time not be easily accepted today by either individuals or financial professionals. So, the NAOI has created an innovative investment vehicle that we call NAOI Dynamic Portfolios. These are traditional MPT portfolios that contain one or more DIs as building blocks.

The illustration below shows a “hybrid” DIT/MPT portfolio that holds both a DIT, buy-and-sell, Segment as well as an MPT, buy-and-hold, Segment with the allocations shown. This is the type of portfolio configuration that the NAOI recommends to our students.

This simple Dynamic Portfolio, for the test period from the start of 2008 to the end of 2019, earned an average annual return of +17.7% with a Sharpe Ratio of 1.17. You can see that while this configuration averaged a lower return than the standalone DI in the example discussed just above, its risk was significantly lower as evidenced by the higher Sharpe Ratio. And we found that by holding at least two non-correlated ETFs at all times, both individual investors and investment advisors were comfortable with this portfolio configuration.

A “Market-Biased” Portfolio - The Perfect Portfolio for Retirement Accounts

The NAOI refers to above configuration as the NAOI Market-Biased Portfolio. The following diagrams show why. Keep in mind that the DI purchases and holds for one Review-Period either a Total Stock or a Total Bond ETF depending on which is trending up in price most strongly.

Portfolio Allocation when Stocks are Trending Up:

Portfolio Allocation when Bonds are Trending Up:

You can see that this portfolio will always be automatically “biased” toward the asset class that is trending up in price at the time of a review – typically quarterly. And because Stocks and Bonds tend to move up and down at different times, this portfolio is designed to increase in value at all times regardless of economic conditions; even during stock market crashes.

Many NAOI students are using this portfolio type in their retirement plans and seeing returns that far exceed those of their family, friends and fellow workers who are holding traditional MPT portfolios. And they are investing with far less stress!

A Non-Disruptive Portfolio Design Approach

The NAOI has been warned by skeptics that the changes we are advocating here are simply to great for the financial industry to accept. But this is not true. The MPT Segment of a Dynamic Portfolio can be the portfolio that an advisor creates using their current products and methods as illustrated below.

The addition of a Dynamic Investment makes the traditional MPT portfolio market-sensitive and capable of both increasing returns and reducing risk in all market conditions as discussed above. As a result, advisors and financial organizations can easily take advantage of DI benefits without disrupting the methods and products they are using today!

The level of sensitivity that an NAOI Hybrid Portfolio has to market price movements is determined by the % allocation of money assigned to the Dynamic Investment. And experience tells us that the higher this allocation is, the better the portfolio will perform.

Click here for more information related to Dynamic Portfolios.

FOUR Portfolio Diversification Factors

While today’s MPT portfolios use two diversification factors, NAOI Dynamic Portfolios use four. They are as follows:

1. Company Diversification - via the use of ETFs (used by MPT and DIT)

2. Asset-Class Diversification - by working with multiple asset classes (used by MPT and DIT)

3. Time Diversification - due to the DI’s periodic reviews and potential changes in the equities held (DIT only)

4. Methodology Diversification - by using both MPT buy-and-hold methods and DIT buy-and-sell methods (DIT only)

It should be noted that the first two diversification elements listed above, used by both MPT and DIT, reduce risk but also reduce returns. Diversification elements 3 and 4, used only by MPT/DIT based portfolios, not only reduce risk but also enhance returns! The use of four diversification elements in a portfolio is truly an evolutionary step forward in the world of investing.

The Benefits of Using Dynamic Investments

You have seen above that individual investors will benefit from the higher returns and lower risk of Dynamic Investments. But there are other benefits of using DIs that are equally valuable for BOTH individual investors and investing professionals. Listed below are just a few of the top benefits for each. More are found on this Web site by clicking the links provided.

Top Benefits of using DIs for Individual Investors

• A simple, logical approach to investing that people of all experience levels can understand without extensive education

• Higher returns with lower risk than MPT portfolios in all economic conditions

• Absolute protection from market crashes resulting in lower investing stress levels

• By basing trading decisions on objective observations of market data, DIs eliminate a massive area of human-risk that investors must deal with today.

• Investing becomes far less stressful for the average investor than it is today. They can relax knowing that their Dynamic Investments and Portfolios are constantly monitoring the market and automatically generating trade signals to either capture profits or to avoid significant losses.

Click for more: Benefits for Individual Investors

Top Benefits of using DIs for Investing Professionals

• Better Products, More Clients, Higher Revenues. DIs enable financial organizations to easily create and offer a full product line of new, higher-performance investment products than they offer today. These unique, dynamic offerings will attract new clients, open significant new revenue streams and provide advisors and organizations with a significant competitive advantage in a crowded market.

• DIs monetize combinations of existing ETFs. By doing so, they uncover massive hidden value in existing ETF product lines that is now lying dormant.

• The Productization of Investing! Dynamic Investments have a universal goal that works for all investors regardless of risk profile. As a result, financial organizations that create proprietary DIs can sell them directly to financial advisors AND to the investing public as complete investing products. This is the Holy Grail of investing! The NAOI in the first organization to offer a catalog of optimized DIs that users can easily implement and manage on their own, using an online broker, if they wish.

• A New Field of Product Development. The DIT approach to investing opens a vast and virgin area of new product development - more information on this topic is found here

Click for more: Benefits for Investing Professionals

The Basic DIT/DI Books

The NAOI has created a substantial support system for the design, creation and use of Dynamic Investments and Dynamic Portfolio. One element of this support system is the availability of high-quality education such as the two books pictured at right - one for investing professionals which is available on this site in the NAOI Store and one for the investing public that will be available on this site as well as on the Amazon publishing platform soon.

These publications show both buyers and sellers how Dynamic Investment Theory and Dynamic Investments work and how to use them to take full advantage of the wealth creation power of equity markets. Each is only about 70 pages long and both are easy to read and understand.

Advanced levels of DI education include NAOI Seminars and DI Design Classes as discussed at this link.

There Will Be Skeptics

As you read the information on this page, you may have doubts. I know I would if reading it for the first time. An entire chapter in the “Introduction to Dynamic Investments and Market Sensitive Portfolios” book, pictured above, is dedicated to addressing these doubts. Below are the top reasons why people tell us that DIs can’t possibly work and a summary of our response to each:

1. The use of DIT methods will result in short-term capital gains taxes. Yes, the DIT buy-and-sell strategy will result in holding equities for less than a year, resulting in short-term capital gains taxes. There are two reasons why this is not a problem. First, most investing done by the public today is in retirement accounts in which gains are not taxed until money is withdrawn, starting a age 59 1/2, and then at personal income tax rates. Second, the significantly higher returns produced by DIs and DPorts, as illustrated in the examples above, more than make up for any additional taxes.

2. It is impossible to time the market. The use of trend-following methods can be seen as “timing the market” and experts will correctly say that you can’t time the market with any degree of accuracy. But DIT doesn’t ask you to. DIT makes trades based on observations of historical price trends. And extensive testing shows that past price trends have remarkable predictive power for future price movements, at least in the short term. So, yes, it is true that YOU cannot time the market; but MARKET price-trends can.

3. There are already momentum products in the market - this is nothing new. The NAOI is well-aware of momentum and factor-based ETFs in the market. In fact, we use some of them in our Dynamic Investment designs. But the NAOI is introducing far more to the investing world than several trend-following ETFs. We are offering the logic and a platform that enables the easy creation of an unlimited number of price-trend following investments that can meet a wide spectrum of investing goals. And the DIs created using the NAOI platform will provide far higher performance than the momentum-based products available in the market today.

4. The financial industry will not accept a change this big. The financial services industry does not accept fundamental changes easily and many in this arena will oppose those suggested here. There are two responses to this objection. First, the change is not huge when DIs are simply used as building-blocks in traditional MPT portfolios as discussed above on this page. Second, DIT creates investment products that are so superior in performance to MPT portfolios that financial organizations that offer them will have a massive competitive advantage over those that don’t.

There will always be skeptics, doubters and those resistant to change. But consumer demand for the superior performance of Dynamic Investment and Dynamic Portfolios in a competitive marketplace will force financial organizations to accept and offer them in order to survive.

Working with the NAOI

The NAOI offers to financial advisors and organizations multiple options for working together. They are discussed below.

NAOI Consulting

The NAOI also offers Consulting Agreements that show financial organizations how to use DIT methods, Dynamic Investments and Dynamic Portfolios to capture market share, increase revenues and meet their unique goals. Here are several examples:

• For ETF Developers and Vendors: If your organization develops or offers ETFs we can show you how to combine them in DIs that produce significantly higher returns with lower risk than any standalone ETF or MPT portfolio in existence today. By doing so, the use of DIs uncovers massive value that is currently “hidden” in your existing ETF product line.

• For Portfolio Strategists and Designers: If your organization designs and/or manages portfolios we will show you how your job just got a whole lot simpler and your portfolios a whole lot more profitable and less risk via the use of Dynamic Investments. DIs enable portfolio solutions that will outperform any MPT-based portfolio in existence today. We can show you how.

• For Financial Advisors: Dynamic Investments give you the tools needed to provide clients with higher return, lower risk portfolios as discussed above. And because DIs signal trades based on objective observations of market data, they provide the built-in trading plan that your clients want and need to take gains and avoid losses. And you can simply forget about the complexities of periodic portfolio rebalancing - it is automatic. In addition, the use of DIT methods and DIs is so simple and effective that you will spend far less time designing and managing client portfolios. This is time better spent providing financial planning knowledge to your clients; an area of wealth creation that individuals desperately need and will be happy to pay for.

• For Retirement Plan Providers: A large number of NAOI students are people who are investing in Retirement Plans. When we review their portfolio they are all over the map. Some are too risky while others are too conservative. And a major flaw we see in them is that their advisors unnecessarily increase allocation to Bonds the closer they are to retirement age, a time when they need income the most. The NAOI has created the perfect Retirement Portfolio in the form of our Market-Biased Portfolio described above on this page. It provides the high returns with low risk that individuals planning for retirement need. Via a Consulting Agreement we can show Retirement Plan Providers how to capture a large share of this very lucrative, and competitive, market.

The ROI of an NAOI consulting contract will be off-the-charts high. We guarantee it. More information is found at this link.

Advanced NAOI Dynamic Investment Education Classes

Dynamic Investments are easy to create and implement. The NAOI designed them specifically to be that way. But creating optimal DIs that produce the highest returns with the least amount of risk in virtually all economic conditions requires additional training. To gain an in-depth understanding of DIs and DI portfolios and to master the art and science of DI design, the NAOI offers advanced DI Education and Design Classes and Seminars as discussed at this link.

NAOI Partnerships

A recent survey by the CFA Institute showed that on 23% of individuals trusted their financial advisors. Having worked with and taught the investing public for over two decades, the NAOI is not surprised. People know that advisors are also salespeople and this can lead to biased investment product recommendations. A Partnership with the NAOI can immediately allay these fears as we are recognized by the investing public as a strong advocate for the individual investor. Any of the Partnerships described below can immediately increase your “trust factor.”

Here are the Partnership types currently offered by the NAOI.

Strategic Partnerships

With a Strategic Partnership a financial organization will have access to the NAOI’s unmatched knowledge and understanding of the investing public. Based on 20+ years of teaching and working with individual investors, we know what investors want and need from the financial services industry to enable them to participate in the market with confidence and without fear. This is incredibly valuable and actionable information that our Strategic Partners will be able to use to create and offer investment products that the market will buy.

Education / Academic Partnerships

Via an Education Partnership the NAOI makes available to financial organizations a massive investor education knowledge base and proprietary financial planning calculator set that can be used to quickly create customized education material for our Partner’s products and services. Input from our students has shown us time and time again that investors buy what they understand. .

Marketing / Sales Partnerships

The NAOI can assist your marketing and sales efforts in multiple ways. The NAOI “seal of approval” shows individual investors that your organization is working with a trusted advocate for the individual investor. Of course due diligence would be required by both parties for this type of Partnership. In addition, the NAOI refers our students to organizations that use our services and offers the products that we teach them to use such as Dynamic Investments and Portfolios.

Research and Development Partnerships

Creating new investment products and methods today that are embraced by the investing public is difficult to say the least. Mutual funds and ETFs currently exist that follow virtually every index and investing strategy in existence. Plus, the creation and market process is incredibly time consuming and expensive. A problem is that all such developments today are confined within the industry-standard MPT “box”.

As you have read on this page, DIT breaks free from these constraints and by doing so opens a vast an virgin world for new product development in the form of Dynamic Investments and Dynamic Portfolios. And this realm of development produces products that provide far higher returns with lower risk than virtually investment product in existence today.

The NAOI is looking for Development Partners to help us exploit the massive potential of this new approach. Financial organizations seeking to expand their product lines, increase their market share, open new revenue streams and gain a massive competitive advantage in a crowded field need look no further than an NAOI R&D Partnership. More information is found at this link.

If you are interested in an NAOI Partnership, contact me personally at LHevner@naoi.org to discuss the possibilities.

Summary and Contact Information

Presented on this Web page is a new approach to investing that the NAOI will begin teaching to thousands of investors in Quarter 3 of 2020. As you can tell, Dynamic Investment Theory and Dynamic Investments are not merely a trading system or fixed set of “momentum” products. This is a comprehensive and evolutionary approach to investing that enables financial professionals to create an almost infinite number of unique and powerful products designed to meet a full spectrum of investing goals.

Dynamic Investing Theory does not simply “tweak” the way investing works today, it replaces it with a better, more profitable approach. This new approach evolves the world of investing to thrive in 21st century markets. Financial advisors and organizations that recognize this first, and begin planning for it now, will profit handsomely. Those who resist this change, will struggle to survive. That’s just how evolution works.

Please feel free to contact me directly at: LHevner@naoi.org with questions or for more information. And consider joining the NAOI Updates Email List via the form at the bottom of this and each page of this site. I look forward to discussing with you the once-in-a-generation opportunities that now exist and how we can cooperate to meet our common goal of empowering the investor - both individual and institutional. And by doing so to also give your organization a massive competitive advantage in a crowded field.