Overview

Welcome to a Web page that provides a quick overview of how the world of investing is about to change at a fundamental level. This change comes in the form of a new approach investing called Dynamic Investment Theory (DIT) and a next-generation investment type it creates called Dynamic Investments (DIs).

Developed by the National Association of Online Investors (NAOI), based on a multi-year study using extensive input from the investing public, this approach ushers in a simpler, more profitable and less risky era of investing for both individual and institutional investors. It is the result of “thinking-differently” about investing, unconstrained by the financial industry-standard methods for portfolio design and management.

On this Web page you will learn why change is needed, how DIT was created and how DIs work. You will also read about the exceptional performance that DIs can produce in all economic conditions by being “sensitive” to market price trends.

This Is What the NAOI Is Teaching to the Investing Public

As you will read below, the NAOI is the market’s premier provider of objective investor education to the public. We are currently incorporating DIT and DIs into our education content that reaches a large segment of the investing public. When individuals learn about the benefits of using DIs, the demand for them will grow and the public will look for financial advisors and organizations that offer them. An NAOI consulting agreement or partnership, as also discussed below on this page, shows how.

NAOI students who field-tested the use of DIs for over two years in their portfolios tell us that this is the approach to investing that will finally enable them to enter the market with confidence and without fear. And it will do the same for thousands, if not millions, of individuals who are currently on the market sidelines, unwilling to subject their financial futures to the risks inherent in today’s standard investing methods. ———————————————————————————-

The Bottom Line of what You Read Here:

There exists today absolutely no simpler, quicker or more cost-effective way for a financial organization to create superior investment products, greatly expand its client base and significantly increase revenues than by learning about, and offering to the market, the ultra-simple Dynamic Investments and Dynamic Portfolios that are discussed on this page.

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By Invitation Only. This Web page is accessible to only a select few of my LinkedIn contacts who the NAOI believes will benefit the most by learning about this new approach first; before release to the public at large.

Your Time Is Valuable. This page will take from 15-20 minutes to read. The description and impact of the fundamental change to investing discussed here cannot be communicated via bullet-points. And this page is an information vehicle, not a marketing brochure. Therefore, I suggest that you scroll down this page and scan the headlines, tables and diagrams presented. Some areas of information may be of more interest to you than others. Then decide whether devote the time required to read the entire page. Should you decide to do so, you will have the information needed to gain a massive competitive advantage in a crowded field.

Further Information. Note that we have numbered each Section of information presented below to enable easy reference to topics that you may wish to discuss further. To do so you can contact me, Leland Hevner, President of the NAOI, directly at LHevner@naoi.org or via a message at LinkedIn at https://www.linkedin.com/in/lelandhevner/

1. Introductions

Hello. My name is Leland Hevner. I am the President and CEO of the NAOI, an organization I founded in 1997 with the mission of empowering individuals to invest with confidence via comprehensive, objective and actionable education along with the use of online resources.

Thousands of individuals have taken our online courses, read our books (Wiley is one of our publishers) and/or attended our college classes. As a result, we are a major influencer on how people invest today as well as on the advisors / financial organizations that they choose to work with.

As we teach the public about investing, they also teach us. Based on 20+ years of interacting with thousands of individual investors we have gained an unmatched knowledge of how they view the world of investing today and the factors they take into account when making investing decisions. This knowledge is one of the NAOI’s greatest assets.

One of the most important things we know is that far too many individuals who need investing income are not taking full advantage of the wealth creation potential of markets because they are not willing to subject their financial futures to risks of how investing works today. As a result, they are either leaving the market, not entering it in the first place or investing far too conservatively. It is critical for all members of the financial services industry to understand issue. I expand on it next in Section 2 and begin to solve the problem in Section 3.

2. Why People Fear Investing Today

The way investing works today is so complex that individuals see little option but to entrust their financial futures to advisors who they also know are salespeople. They are also aware that the “static”, buy-and-hold portfolios recommended to them are dangerously vulnerable to value loss resulting from market price corrections and crashes. For many individuals this is simply not a risk they are willing to take.

The public’s fear of significant money loss due to market crashes arises primarily from the fact that virtually all individuals today are given portfolios designed using methods based on Modern Portfolio Theory (MPT). This is a methodology that requires portfolios to be designed to match the risk tolerance of each individual and then held for the long-term, through all economic and market conditions. It gives investors no trading plan for capturing positive returns that exist somewhere in the market at all times or for avoiding losses.

The problem is that MPT was introduced in the 1950’s when markets were a far different place. While markets have evolved dramatically since then, MPT methods have barely changed at all. And they simply can’t cope with modern markets. It is time for the approach used to design and management portfolios to evolve to take better advantage of 21st century market dynamics.

3. Thinking Differently About Investing

The NAOI taught MPT methods for portfolio design and management for over a decade - the financial services industry made available to us no other choice. Yet, following the 2008-2009 crash, when many of our students who held MPT portfolios that we had taught them to create lost up to 50% of their investment money, I stopped all NAOI education classes. I realized that MPT-based portfolios simply could not cope with modern market volatility and that fundamental change was needed.

At that point, I shifted NAOI resources from education to research and development in order to find an alternative to, or supplement for, MPT; one capable of protecting portfolio value in all market conditions without sacrificing returns potential. To meet this goal I directed the NAOI R&D team to start with a blank slate, unconstrained by MPT methods and rules. I told them to “think differently” about how portfolios could be designed and managed in a manner that enables them to thrive in 21st century markets.

4. Investor Goals and the Discovery of “Dynamic Investment Theory”

We began our research by surveying the investing public. I was determined that any new approach to investing be based on meeting the wants and needs of average investors; not on decades-old academic theories as is the case with MPT. We asked student focus-groups to define their top goals for a new portfolio design/management approach that would enable them to participate in the market without fear. The goals listed below topped their list. They wanted portfolios with the following features:

• Simple and Transparent - People want to understand the investments that are in their portfolio, why they were there and under what conditions they will be reviewed and changed in response to current economic conditions. This is information that most investors don’t have today; forcing them to simply trust a third party advisor with their financial futures.

• Higher Returns without Higher Risk - This is a fairly obvious goal that MPT-based portfolios don’t provide. Central to MPT is the assumption that higher returns come ONLY with higher risk. As you will read below, we found this to be not true.

• Absolute Protection of Portfolio Value from Market Crashes - This is the goal that will significantly lower investing stress levels and result in a massive number of people entering the market who are currently on the sidelines in fear.

• Reduction or Elimination of the Human-Risk Element of the Investing Process - Because the world of investing is so complex today, individuals see little option but to accept, without question, the recommendations of advisors and hope for the best. Yet they know that such recommendations can be tainted by negative factors such as the use of bad data, faulty analysis, incorrect judgments, sales bias and trades that are not in the best interest of the investor. People want this “human-risk” element significantly reduced or eliminated from the investing process to feel comfortable about participating in the market.

With this list in-hand, we immediately saw that MPT portfolios met none of these goals. So our R&D team started with a blank slate, as if MPT didn’t exist. As the research effort progressed we saw that critical to the task of meeting investor goals was the elimination of the human-risk element from the investing process. This is an issue that MPT methods do not adequately deal with and a major reason why MPT portfolios are so dangerous to buy and hold today.

Taking Advantage of Quantitative Analysis

To address this issue we saw that it would be necessary to create a new investing approach in which equity purchases and trades would be made based on objective observations of market data, not on subjective human judgments. To do so, we turned our attention to a field of study called Quantitative Analysis and specifically the study of market price trends. In this area, our research team identified three factors that could be combined to develop an approach that met the above goals. The following empirical observations were made:

• The prices of asset classes and markets / market segments are cyclical - they move up and down on a regular basis

• The prices of different asset classes and markets cycle move up and down at different times - the market is filled with uncorrelated indexes and equities that track them. This means that at all times in the market there exist equities that are trending up in price.

• Price trends are persistent - an average stock price “uptrend” lasts 72 months and an average stock price “down trend” lasts 14 months as illustrated below.

The Creation of a Hypothesis

These observations led us to the hypothesis that at all times, in any economic condition, there exist in the market areas that are moving up in price and, further, that a new investment type could be created that was capable of automatically finding and buying equities in these areas while avoiding areas of the market that are trending down in price. We further predicted that by doing so, such an investment type could meet all of the goals set for us by the investing public as listed above.

The Creation of “Dynamic Investment Theory”

Following extensive research and testing, NAOI researchers designed an innovative investment type that performed as predicted by our hypothesis and called them Dynamic Investments (DIs). They are discussed just below. With the creation and testing of DIs we concluded that our hypothesis was true with a high degree of confidence. At that point we elevated its status to a “theory” and called it Dynamic Investment Theory (DIT).

5. Introducing NAOI Dynamic Investments - A Next-Generation Investment Type

DIT sets the logic and rules for the creation of Dynamic Investments (DIs) that are designed to automatically change the ETFs (or mutual funds) they hold based on a periodic sampling of market price trends.

By striving to own only equities that are trending up at time of purchase and avoiding or quickly selling those that are trending down, we found that DIs are capable of producing returns that “static” MPT portfolios can’t match, with lower risk and no active management required. Let’s look at how they do this.

All DIs contain four components as listed below. An unlimited number of DIs can be created for full spectrum of investing goals by defining these variables:

• A Dynamic ETF Pool (DEP) - This is where a DI designer places two or more ETFs that track the areas of the market where the DI will search for price uptrends at a periodic review.

• A Review Period - This is how often the ETFs in the DEP are reviewed and ranked based on the strength of their upward price trends. Only the top-ranked ETF is purchased, or retained if already owned, and held until the next Review event. For example, a popular Review Period is “Quarterly”.

• A Price Trend Indicator - This is the price trend indicator used to rank the ETFs in the DEP at a Review event. The NAOI has identified one that works quite well. We reveal it to our students and clients.

• A Trailing Stop Loss “Sell Trigger - A Trailing Stop Loss order is placed along with the ETF purchased by the DI. It protects the value of the ETF from significant price drops during the short time it is held between Review Events.

While all of these components are variables, the NAOI has found that setting the bottom three components listed above as constants and changing only the ETFs in the DEP works quite well for developing a full product line of powerful DIs. The NAOI offers classes to the financial services industry on the “art and science” of DI design as discussed at this link. We have found optimal values for each of the above variables that we share with our students, consulting clients and partners.

6. A Simple DI’s Performance: 2008-2020

To provide just a glimpse of the type of performance that DIs can produce, let’s look at the simplest DI design possible. This DI has in its DEP only a Total Stock Market ETF and a Total Bond Market ETF and samples their price trends on a quarterly basis. The ETF with the strongest price uptrend is bought, or retained if already owned, and held until the next Review. Thus, this DI holds either Stocks or Bonds at any one time.

The table below shows the performance of this incredibly simply DI for the period from 2008-2020 as compared to an MPT portfolio holding the same ETF types with the allocations shown in the table.

You can see that by being sensitive to market movements, this DI was able to produce returns almost three times higher than the buy-and-hold MPT portfolio without commensurately higher risk as shown by the higher Sharpe Ratio. To do so, DIs take advantage of a new diversity element used by the NAOI that we call “time-diversity” that not only reduces risk but also enhances returns. Note that in 2020, not yet ended as of the time of this writing, the DI sold the Stock ETF quickly when the market crashed in February, with minimal loss, and repurchased it as Stocks recovered.

7. An Enhanced DI’s Performance - The NAOI “Alpha” Dynamic Investment

While producing amazing returns with relatively low risk, the above example does not begin to demonstrate the full power of Dynamic Investments. By simply adding one more carefully selected and tested ETF to the above DI’s DEP, and thus one more area to search for uptrending prices, the following results were produced. Note that higher returns did not come with commensurately higher risk as the Sharpe Ratio went up along with the returns.

We call this configuration the NAOI “Alpha” DI. It produced amazing returns without excessive risk during the test period and it is extremely simple to understand, implement and manage. This is the DI that we suggest to our students to use either as a complete portfolio or as a building block in an MPT portfolio they may currently hold to both boost its performance and reduce its risk . Annual returns for this DI are found at this link and updated quarterly by the NAOI. The “NAOI Universal Portfolio” shown on the linked page is discussed below.

8. Uncovering Massive “Hidden Value” In Existing ETF Product Lines by Monetizing ETF Combinations

In addition to producing exceptional performance for investors, Dynamic Investments also provide significant benefits to ETF developers and vendors by uncovering massive value that is currently lying dormant in existing ETF product lines.

By combining existing ETFs in the DI structure as discussed above, a complete new Dynamic Investment product line can easily be created with minimal time, effort and cost. This new product line will add massive value to a corporation’s balance sheet while also increasing ETF sales dramatically. This is value that is currently not being exploited in existing ETF product lines. The following diagram illustrates the concept. For more information on this incredible benefit of using DIs, see my Article posted on the NASDAQ site at this link.

In essence, NAOI Dynamic Investments “monetize” ETF combinations. This is an evolutionary development in the world of investing that forward-thinking organizations can begin to take advantage of immediately by working with the NAOI.

9. Introducing Dynamic Portfolios

It must be understood that it is NOT the intention of the NAOI to replace MPT with DIT. Both methods have advantages and they work quite well together. DIs can be easily be used as building blocks in MPT portfolios. The insertion of a DI building block into a traditional MPT portfolio will both increase the portfolio’s returns and lower its risk. We call these MPT/DIT hybrid portfolios “Dynamic Portfolios”.

The diagram below shows an example of an NAOI Dynamic Portfolio that has both a buy-and-sell, DIT-based Segment and a traditional buy-and-hold, MPT-based Segment. This portfolio configuration enables portfolios designers to take advantage of Dynamic Investment performance without significant disruption to the methods they currently use to design portfolios.

Four Diversification Elements!

Amazingly, this portfolio type takes advantage of four diversification elements, namely: company, asset type, time and methodology. This is truly an evolutionary portfolio design. MPT portfolios use only the first two of these diversification elements.

10. The NAOI Universal Portfolio - A Default Portfolio “Product”

The world of investing today suffers from the lack of a viable “default” portfolio that works for all investors regardless of their risk profiles. Using DIT methods and Dynamic Investments, the NAOI has found one as shown in the diagram below.

We call this the “NAOI Universal Portfolio” and are teaching our students to consider using it as a starting point for their investing activities. The DIT Segment holds the “Alpha” Dynamic Investment discussed above, using a buy-and-sell strategy, and the MPT Segment owns the ETFs shown in the diagram using a buy-and-hold strategy. At all times, this portfolio will have a higher allocation of money to the asset class that is trending up in price. And this occurs automatically without the need for risky, human subjective judgments.

The following table shows the performance of this portfolio for the period from 2008-2020. You can see that it produces significantly higher returns with lower risk than virtually any generic 60% stock, 40% bond MPT-based portfolio in existence during the same time period.

With the development of the NAOI Universal Portfolio two major goals have been accomplished. First, because trades are signaled automatically based on observations of price trends, not on subjective human judgments, a massive human-risk element is eliminated from the investing process. As a result, management of this portfolio can be completely automated. Second, since the NAOI Universal Portfolio provides high returns with low risk for all investors, regardless of their risk profile, no customization for each individual owner is needed. Thus, it can be seen as the market’s first portfolio “product”. This is a huge advance in the evolution of investing as discussed next.

11. The “Productization of Investing” - The Holy Grail of the Financial World

The “Holy Grail” of investing is the productization of investing. When investment portfolios become consumer products everything becomes easier and more profitable for both investment buyers and sellers. Productization is not possible using MPT methods that require portfolios to be customized to match the risk tolerance of each investor. In contrast, DIT methods design portfolios that seek to maximize returns while minimizing risk; this is universal goal that works for all investors, so no customization is needed. Dynamic Investment Theory enables the creation of portfolio products that can be bought off-the-shelf from a variety of vendors.

Another element critical for portfolio productization is that each Dynamic Investment has a built-in, intelligent trading system that signals trades based on objective observations of equity price trends. As a result, DI management can easily be automated; making DIs a truly “plug-and-play” investment product.

And look again at the performance of the DI-based products discussed above. These are not just “viable” investments, they are superior investments. The financial services industry has searched for the Holy Grail of investment productization for decades. They haven’t found it. The NAOI has. By making high-return, low risk portfolios “consumer products’ the entire world of investing changes and for the better.

12. Adding Massive Value to an Existing ETF Product Line

Above, on this Web page, you saw how Dynamic Investments uncover hidden value in existing ETF product lines by monetizing ETF combinations in the DI format. The value of an ETF product lines is dramatically increased by easily adding a full DI product line that will significantly increase the sale of existing ETFs. Now we are going to add yet more value by adding a third Tier, this one in the form of Dynamic Portfolios as described just above.

The diagram below illustrates how an existing ETF product line can be significantly expanded and enhanced via the strategic us of Dynamic Investments. Each Tier adds significant value and increases market reach. The Tiers are briefly describes under the diagram.

Tier 1 - ETFs

This is the existing product line of ETFs that an organization owns or sells. By holding multiple stocks or bonds, ETFs are company diversified. ETFs are typically sold to advisors who place them in MPT-based portfolios for clients.

Tier 2 - Dynamic Investments

This product line Tier consists of Dynamic Investments (DIs) as described previously on this page. As you read, DIs are created by simply combining standalone ETFs in the Dynamic ETF Pool of the DI. The ONE ETF with the strongest uptrends is bought or retained if already held based on a periodic review of the price trends of each. DI typically hold ETFs that track Stocks and Bonds, as a result they are both Company and Asset Diversified. And they add another diversification element in the form of “time-diversification” resulting from the fact that the ETF held changes based on a periodic sampling of market trends.

As you also learned above, DIs are “plug and play” portfolio products that do not need to be customized for each investor and they have a built-in intelligent trading plan that signals trades based on objective observations of market data, not on subjective human judgments. Products from this Tier can be sold to advisors as well as directly to the investing public, resulting in a massive increase in a company’s prospect base.

Tier 3 - Dynamic Portfolios

The third product line Tier consists of Dynamic Portfolios (DPorts) as also described above. DPorts are created by combining standalone ETFs - from Tier 1 - with Dynamic Investments - from Tier 2. The NAOI Universal Portfolio as discussed above is a DPort and an unlimited number of them can be created for a variety of goals; again with minimal time, cost and effort required. DPorts are portfolio “products” that can be sold to advisors for resale to their clients, and like DIs they can also be sold directly to investors, both public and institutional.

DPorts have the three diversification elements as DIs, but they add one more. This is “methodology diversification’ as the standalone ETFs in the DPort use a buy-and-hold methodology and the DI(s) use a buy-and-sell methodology. The benefits of using 4 diversification elements, as opposed to the 2 used by MPT portfolios, are revolutionary in the world of investing.

Adding Massive Value to Current ETF Product Lines

You can see that the introduction of DIs allows ETF developers/vendors to increase the size and value of their product line exponentially with little cost, time or effort. And the additions to the product line opens a massive new market as DIs and DPorts can be sold directly to investors, both individual and institutional, in conjunction with NAOI education.

Of course training in how Tiers Two and Three are developed is required to maximize this potential. The NAOI provides this training along with a development platform for creating optimal DIs and DPorts. NAOI cooperative agreements are discussed below on this page.

13. Enabling an Emphasis on Financial Planning

When portfolios become “consumer products”, advisors can simply buy them from catalogs or easily create them on their own with NAOI training. And, as you have learned, each DI has a built-in, intelligent trading plan that requires no active management. Both of these DI benefits save investment advisors a significant amount of time and effort when working with a client. This is time that can be used more effectively for teaching clients Financial Planning topics; a field of wealth generation and preservation that is not given the attention it deserves today. Investing advice plus Financial Planning advice is what the investing public wants from the financial professionals they work with. Those that offer both will hold a massive competitive advantage in a crowded field.

The NAOI enables advisors to start teaching the basics of financial planning a suite of proprietary Financial Planning Calculators found at this link.

14. Developing Dynamic Investment Applications

The value of using Dynamic Investments is fully realized only by understanding how they can be used to increase the effectiveness and/or profitability of specific areas in the financial services industry. The NAOI has written White Papers for how DIs can make the job titles and investing activities listed below far simpler, more profitable and more effective than they are today.

• For ETF Developers

• For Portfolio Designers

• For Portfolio Managers

• For Financial Advisors

• For Online Brokers

• For 401(K) Providers and Buyers

• For Corporate Strategists

• For Business Development Managers

• For Academia

For more information on how Dynamic Investments will greatly improve the effectiveness and profitability of each of these job titles and financial areas of effort go to this link.

15. Opening a Vast and Virgin World of New Product Development

New investment product development today is getting more and more difficult. Creating new ETFs and mutual funds requires significant time, effort and expense. And identifying new products that are uniquely valuable to the investing public is extremely difficult.

DIT and NAOI Dynamic Investments allow product developers to bypass this log-jam as shown in illustration at right.

DIs are a totally unique investment type that breaks out of the “MPT box” where the industry has languished for decades and in which new ideas and products are becoming scarce. When released from the constraints of MPT methods new product development is simpler and far more profitable than it is today.

The NAOI shows how new, better investment products and investing methods/strategies can be created by accessing the NAOI support resources discussed below on this page.

16. Why DIs will become Mainstream Investments

The NAOI is fully aware that many in the financial services industry will prefer to ignore the power and potential of Dynamic Investments and Dynamic Portfolios. Or they will push them into an “alternative investment” category and be done with it. This would be a major mistake for several reasons.

The first reason is that as an objective investor education organization, the NAOI is uniquely positioned to make the public aware that DIs exist and to show them the exceptionally high returns that this simple product can produce without excessive risk. We can reach thousands of individuals with this new approach via our extensive education channels and millions more via a DI Users Manual, pictured at right, that will soon be available to the public on Amazon and other publishing platforms.

As people learn about the advantages of using DIs, demand for them will grow and investors will search for advisors and financial organizations that offer them. Those that work with the NAOI to include DIs in their product line will capture this new demand and crush competitors that don’t.

The “Trust” Factor

A second reason why DIT and DIs will play a significant role in the future of investing is that the NAOI has built a level of investor “trust” that is lacking in the financial services arena today. A recent study by the Certified Financial Advisors association found at this link shows that only 23% of clients trust their financial advisors.

Only a well-respected, objective and trusted education organization like the NAOI has the power to take a new investing approach investment type “mainstream” in a relatively short period of time and to make Dynamic Investments an attractive alternative to mutual funds and ETFs. Organizations that realize this first by working with the NAOI will benefit the most.

17. Getting Started with NAOI Dynamic Investments

On this Web page I have barely scratched the surface of the power of DIs to improve the way investing works today and the substantial impact it will have on how it will work far into the future.

An easy way for financial organizations to gain the knowledge needed to begin developing and offering Dynamic Investments is to purchase the “Introduction to Dynamic Investment Theory” book, pictured nearby. Its purpose is to teach the basics of this new approach and how advisors, financial organizations how they can easily create and offer a full product line of DIs and Dynamic Portfolios that will outperform virtually any investment product or portfolio that they, or their competitors offer today. The book can be purchased now in the NAOI Store found at this link.

The NAOI also offers DIT Education Seminars, Consulting Services and Partnership to enable advisors and financial organizations to take full advantage of this new approach to investing. These support resources are discussed below on this page and more fully at this link.

18. There Will Be Skeptics

Any change to the world of investing that is as significant as the introduction of Dynamic Investment Theory and Dynamic Investments will have skeptics within the financial world. The NAOI would not release any product without first having it peer reviewed. So we have heard a host of reasons why this new approach can’t possibly work. And we have answers for all of them. Here are just a few objections and our response.

• Objection 1: DIT embraces a buy-and-sell portfolio management strategy that will result in short term capital gains taxes and severely erode DI returns. Our Response: Most investing today is done in retirement accounts in which capital gains taxes do not apply. Also, as you have read above, DI returns are significantly higher than those of buy-and-hold MPT portfolios even after short-term capital gains taxes are subtracted.

• Objection 2: People can’t consistently “time” the market with any degree of success. Our Response: We agree, PEOPLE can’t time the market, but DIT doesn’t ask them to. DIs use the proven predictive power of market price trends to signal trades using a methodology that has enabled hedge funds to produce out-sized returns for decades. So, while we agree that people can’t time the market, the MARKET can.

• Objection 3: The financial services industry will not be receptive to any new investment type that could disrupt current methods that are providing them with significant revenues. Our Response: Above on this page you have read that DIs can be easily integrated as building blocks in traditional MPT portfolios in order to both enhance returns and lower risk. Used in this manner they are not disruptive to current operations. Plus, the power of competition will force the industry to accept DIs. When at least one organization offers DIs, people will flock to them in significant numbers. Other organizations will need to offer DIs to remain competitive. And if an investor can find no financial organization that offers them, individuals can easily take advantage of DIs on their own using an online broker. The DI User’s Manual discussed just above on this page shows them how.

For other responses to critics of DIT and DIs go to this link on the NAOI Site.

19. Evolving the World of Investing By Thinking Differently

20+ years of working with the investing public has shown me that the investing works today is does not enable investors to take full advantage of the wealth generation potential of equity markets. The almost exclusive use of Modern Portfolio Theory (MPT), a 70-year old portfolio design and management methodology, simply can’t cope with 21st century markets. The industry must evolve to to remain viable. The question is “how”.

Some financial organizations will claim that they are evolving the world of investing via Fintech partnerships and products. Robo-advisors is one example. This form of change simply makes MPT methods more effective and, supposedly, easier to use. I find, however, that most NAOI students have little interest in this type of change. As one of my student’s put it: this type of change is little more than putting lipstick on the MPT pig.

In the opinion of the NAOI, effective investing evolution can only occur by “thinking differently” about how investing works at a fundamental level. This means breaking out of the MPT “box” and approaching investing from a totally different direction. As you have read on this page, Dynamic Investment Theory and Dynamic Investments do just that. And you have read on this page how, by removing the constraints imposed by MPT, DIs are capable of producing higher returns, with lower risk than virtually any “static” portfolio that MPT methods can produce. This is the type of fundamental change that represents true investing evolution.

Just the Beginning of the Future of Investing

But DIT and DIs are simply one step in the creation of a better future of investing. The NAOI is working on others. This is why our company tagline, “The Future of Investing Starts Here”, is a Registered Trademark of the NAOI. We invite you to join us in defining a better future of investing via a cooperative effort with the NAOI as described just below.

20. Working with the NAOI

There are multiple ways that your organization can work with the NAOI to take full advantage of Dynamic Investments and Dynamic Portfolios. They include DIT/DI Education Classes/Seminars, Consulting and NAOI Partnerships. They are discussed at this link. The ROI of any of these cooperative efforts will be off the charts high. We guarantee it.

21. The NAOI Public Web Site at NAOI.org

More information related to Dynamic Investments and other NAOI products and services is found on our public Web site starting with our Home Page at this link. There you can read about the Education and Financial Planning products that we have developed and offered to both the public and the financial services industry for over 20 years with great success.

22. Let’s Talk

Please feel free to contact me directly with questions or to request more information at LHevner@naoi.org or send me a message on LinkedIn to begin a conversation. Let’s work together to make the world of investing simpler, safer, more profitable and less risky for both individual and corporate investors. And by doing so to also increase the effectiveness, and revenues, of the financial services industry!