Shown below is the Executive Overview of the NAOI Research Report entitled “A Blueprint for the Future of Investing”. It summarizes why and how the introduction of ETF-based Dynamic Investments and Dynamic Portfolios will change the world of investing at a fundamental level in order to more effectively cope with modern market volatility and to better meet the wants/needs of both investment buyers and sellers.

Executive Overview

The world of investing today is stuck in the past. Virtually all investors are given portfolios designed using industry-standard, Modern Portfolio Theory (MPT) methods that were introduced in the 1950s. While markets have evolved significantly since then, MPT has barely changed at all and the buy-and-hold portfolios it creates simply can’t cope with the challenges of modern markets.

The purpose of this Research Report is to show how the National Association of Online Investors (NAOI) has developed a fundamentally different approach to investing that is designed to thrive in today’s volatile markets and that will enable individuals, who are now on the sidelines in fear, to participate in the market with confidence.

About the National Association of Online Investors

Founded in 1997, the NAOI is a market leading investor-education, investment-research and consulting organization. Thousands of individuals have taken our online courses, read our books and/or attended our college classes. As a result, we are a major influencer on how people make investing decisions as well as how they select investment advisors. By working with both investment buyers (our students) and sellers (our consulting clients) the NAOI is uniquely positioned to evolve the world of investing from the 1950s to the 21st century.

Why Change Is Needed

As we teach people how to invest, they also teach us. And we know that far too many people who need investing income are leaving, or not entering, the market. Why? The reason is that they are increasingly unwilling to accept buy-and-hold, MPT-based portfolios in modern volatile markets. The risks of significant losses when markets crash (an event that occurs on average every 6-7 years) is just too great.

The Change Needed

To solve this problem the NAOI initiated an R&D effort to find a replacement for, or supplement to, MPT methods for designing and managing portfolios. We met this goal with the creation of a new approach to portfolio design and management called Dynamic Investment Theory (DIT) and an innovative investment type that DIT creates called Dynamic Investments (DIs). DIs are designed to automatically change the ETFs they hold based on a periodic sampling of market price trends. This makes them “market-sensitive” and capable of producing higher returns with lower risk in all market conditions – both Bull and Bear - than any investment type being offered today.

Plus, when added as building blocks to MPT portfolios DIs both increase their returns and decrease their risk by using FIVE diversification elements. MPT uses two. We call DI-enhanced MPT portfolios Dynamic Portfolios (DPorts) and are confident that they will soon be the investment-of-choice by both investment buyers and sellers.

In this Research Report you will learn what DIT says, how DIs work and how to easily create them by simply combing existing ETFs in the unique DI format. You will also learn about the amazing benefits of using DIs. A few are discussed just below.

Dynamic Investment Benefits

DIs enable a host of investing benefits that are not possible today using MPT methods. Here are a few of these benefits that you will learn about in this Report:

  • In addition to producing higher returns with lower risk in all market conditions, DIs provide absolute protection from significant losses resulting from major market corrections and crashes.

  • DIs automatically signal trades based on objective observations of market data, eliminating the significant risks related to the subjective human judgments used for this purpose today.

  • DIs are easily created by simply combining existing ETFs in the DI format - bypassing the time, effort and expense of creating new mutual funds and ETFs.

  • Financial organizations that offer DIs will immediately increase the size and value of their current ETF product line by monetizing combinations of existing ETFs.

  • When added as building blocks to MPT portfolios, DIs both increase their returns and lower their risk by automatically adjusting portfolio allocations to take advantage of current market conditions. We call these Dynamic Portfolios (DPorts).

  • DPorts take advantage of FIVE diversification elements. MPT uses only two.

  • DIs enable the “productization of investing” – the Holy Grail of the financial world that “experts” have been seeking for decades. They haven’t found it. They NAOI has. The NAOI Research Report shows how.

Readers will be able to take advantage of these benefits, and others discussed in the pages that follow, immediately upon completion of the last Section of this Research Report.

Why this New Approach Cannot Be Ignored

The NAOI has been teaching the use of DIs throughout our extensive education network for over three years and demand for this new approach is growing. Students tell us that this is finally the investment type and investing approach that will enable them to enter the market with confidence and without fear. And they will search for advisors that offer them.

By working with both investment buyers and sellers the NAOI is perfectly positioned to take this new approach “mainstream” by creating demand via multiple channels. We will continue to teach the use of DIs throughout or education network, We will show our consulting clients how to gain a significant competitive advantage by offering DIs. And we will initiate a marketing campaign that informs the public of the significant advantages of using DIs instead of, or in addition to, the MPT portfolios they are offered today. Plus the NAOI has direct connections with virtually all financial news outlets that are eager to inform their audiences of innovative and superior approaches to investing.

Advisors and financial organizations that include DIs in their investment product lines will be positioned to capture the significant demand that these, and other, NAOI efforts will generate. Advisors and financial organizations that choose to ignore this evolutionary approach to investing will have a difficult time competing.

The Future of Investing Starts Here ®

The NAOI is confident that in the future of investing a majority of investors will hold Dynamic Portfolios that contain a market-sensitive component enabled by Dynamic Investments. This component will constantly monitor the market and automatically signal trades that adjust the Dynamic Portfolio’s ETF allocations to take advantage of areas of the market that are trending up and to avoid, or quickly sell, ETFs that track areas of the market that are trending down. Readers of this Report will learn how.

By escaping the constraints of MPT methods, taking advantage of the unique features of ETFs, tapping into the predictive power of market trends and using the protective power of Trailing Stop Loss orders, Dynamic Portfolios will give investors the higher returns they want and the stronger protections from losses that they need. This is the fundamental change to investing that will empower thousands, if not millions, of individuals to participate in the market with confidence and without fear. And they will do so as clients of advisors that offer it.

With the introduction of Dynamic Investments and Dynamic Portfolios, the future of investing starts here - in this NAOI Research Report - and it starts now.