Welcome to the Web Site of a very unique financial organization called the National Association of Online Investors (NAOI). Our mission is to empower individuals to invest with confidence and success via education, innovation and the use of online resources.

On this page and on this site you will learn about our extensive investor education offerings and an innovative approach to investing that we are including in our education content called Dynamic Investment Theory (DIT).

Developed based on a multi-year research effort by the NAOI using extensive input from the investing public, DIT creates a new investment type called Dynamic Investments (DIs) that automatically change the equities they own based on a periodic sampling of market price trends. By doing so they are capable of producing returns that are significantly higher than industry-standard MPT portfolios with lower risk and absolute protection from market crashes. This is MPT alternative that our students tell us will finally enable them to enter the market with confidence and without fear.

DIT and DIs also enable financial organizations that embrace them to create superior products, attract more clients and significantly increase revenues with minimal time, cost and effort.

The NAOI will begin teaching the use of DIT and DIs throughout our extensive education channels in the fourth quarter of 2020. When we do, the demand for this new approach will grow fast. Financial organizations that learn about this new approach first and begin planning to offer it now will benefit the most. The NAOI stands ready to show you how.

You will learn about Dynamic Investment Theory, Dynamic Investments and Dynamic Portfolios on this site. When you understand how they work and you will see how they usher in a simpler, higher return, lower risk era of investing.

Introductions

Allow me to introduce myself as Leland Hevner, President of the NAOI, an organization that I founded in 1997 with the mission of empowering individuals to become confident and successful investors via education, innovation 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 people invest today and the financial organizations they work with. Our extensive education offerings can be viewed at this link.

The Need for Change

From 1997 to 2009 the NAOI was a leading supplier of investor education to the market. We taught industry-standard portfolio design methods based on Modern Portfolio Theory (MPT), an approach that was introduced to the market over six decades ago, in 1952. Markets have changed significantly since then while MPT has barely changed at all and the portfolios it creates simply can’t cope with modern market volatility. We saw this very clearly in 2008-2009 when the stock market crashed and the MPT portfolios we had taught our students to create crashed with it. As a result, we watched as individual investors began leaving the market in alarming numbers. NAOI interviews with hundreds of investors told us that they had lost faith in the financial services industry and the MPT portfolios they were given. They were no longer willing to risk their financial futures by using decades-old investing methods that were severely outdated and dangerous to their wealth.

At that point I realized that more than education was needed to empower investors, also required was innovation. A new approach to investing was needed for the financial services industry to attract and retain individual investors.

The Change Needed

Following the 2008-2009 market crash, I paused all education activities and refocused NAOI resources from Education to Research and Development in order to find and develop a viable alternative to Modern Portfolio Theory; one designed specifically to work in 21st century markets and met the needs of the investing public.

Following a multi-year research effort we met this goal with the discovery and development of a new investing approach called Dynamic Investing Theory (DIT) and a revolutionary investment type that DIT creates called Dynamic Investments (DIs).

Introducing Dynamic Investments

Dynamic Investments are a unique investment type, new to the world of investing. They are capable of automatically changing the equities they hold based on a periodic sampling of asset class and market price trends. They are capable of detecting areas of the market that are trending up in price and buying into them while also detecting area that are trending down in price and avoiding or quickly selling them. By doing so, they are capable of producing returns that testing show are consistently and significantly higher than those of MPT portfolios in all market conditions with less risk and lower expenses. Plus, DIs are incredibly simple to understand, design, implement and manage.

Focus groups of NAOI students who have learned about DIT and DIs tell us that this is finally the approach to investing that will enable them to enter the market with confidence and without fear. With this input, the NAOI has resumed teaching our education courses.

Dynamic Investment Performance Example

To illustrate the superior performance of NAOI Dynamic Investments, the table below shows the performance of a simple Dynamic Investment that rotates only between a Total Stock ETF and a Total Bond ETF, depending on the price trend of each. This performance is compared with with that of an MPT-based, asset-allocation portfolio using the same ETFs but holding both at all times with a 60% allocation to Stocks and a 40% allocation to Bonds. The test period is from 2008 through the end of 2019, a time period that included both a severe market crash (2008-2009) and an unprecedented bull-market run (2010-2019). Note that the Sharpe Ratio shown in the table is a measure of how much return is achieved for each unit of risk taken and the higher the better.

Dynamic Investment vs. MPT Portfolio Performance Comparison: 2008 - 2019

You can see that the simple NAOI Dynamic Investment produced significantly higher returns than the generic MPT portfolio in all market conditions with lower risk and it actually produced significant gains during the market crash of 2008-2009 by quickly and automatically switching from Stocks to Bonds. It then switched back to Stocks in 2010 and took full advantage of Stock gains from 2010 to 2019. Note that as these words are written at the beginning of 2020, the Dynamic Investment automatically sold the Stock ETF with a loss of approximately 3% and remained out of the market as it dropped close to 20%.

Financial experts will say that the high returns and low risk of the DI shown above are impossible; and they are impossible using the MPT portfolios we are given today. But DIT is an entirely different approach to investing. When we allow ourselves to “think differently” about how to invest, all manner of positive outcomes that are seen today as impossible suddenly become real.

The Rise of Dynamic Portfolios

It is important to point out that the NAOI does not see DIT as replacing MPT any time soon; both methods for designing and managing portfolios have their merits. Therefore, at this link you will learn how the NAOI teaches students to use Dynamic Investments as building blocks in MPT portfolios. DIs instantly make static MPT portfolios “market-sensitive”and capable of higher returns and lower risk. We see Dynamic Portfolios as dominating the future of investing.

Why Dynamic Investments Cannot Be Ignored

The NAOI is currently teaching the use of DIs throughout our extensive education channels that reach thousands of investors. And we will soon release the an NAOI User’s Manual entitled “ High-Return, Low Stress Investing” (see below, right) showing how individuals can easily implement and manage DIs on their own using an online broker, It will be available on Amazon where it can reach millions of investors. As a result, individuals in large numbers will soon begin demanding them from advisors and financial organizations. Investing professionals that offer them will capture this demand and hold a massive competitive in a crowded market. Those that prefer to ignore Dynamic Investments will have trouble competing.

To enable financial professionals to take full advantage of this evolutionary approach to investing the NAOI offers the book entitled “Introducing Dynamic Investment Theory” (see below, left) that is available for purchase now in the NAOI Store at this link. We also offer Consulting Services that are described at this link and NAOI Partnerships that are described at this link.

Dynamic Investments: The Next Step in the Evolution of Investing

The NAOI sees Dynamic Investments as the catalyst needed to free the world of investing from the outdated constraints of 1950’s MPT-based methods and evolving it to meet the demands of 21st century markets and 21st century investors. This innovative approach to investing will bring tens of thousands of individuals into the market who are now on the sidelines in fear, unwilling to subject their financial futures to the risks inherent in owning static MPT portfolios in dynamic markets.

Dynamic Investments will soon take their place in the following list of revolutionary investment types that have evolved the world of investing to a higher and better level.

• Index Mutual Funds - 1975

• Exchange Traded Funds - 1993

• Dynamic Investments - 2020

The world of investing is about to change dramatically and those who recognize the power of Dynamic Investments first will benefit the most. Taking the time to read the information on this site can be the best investment you will ever make