NAOI Dynamic Investments Performance Review: 2016

First of all I want to wish everyone a happy, healthy and prosperous 2017. It’s going to be a very profitable year for holders of NAOI Dynamic Investments (DIs) – regardless of what the economy does. That’s because DIs are “dynamic” investments that periodically and automatically change the equity they hold based on market trends.

But to have confidence moving forward I want to take this opportunity to review how DIs performed in 2016. For this purpose I will use the NAOI designed DI that we call the “Primary Dynamic Investment.” Click here to learn about the National Association of Online Investors (NAOI). 

The NAOI Primary Dynamic Investment

The NAOI Primary DI holds the following Exchange Traded Funds (ETFs) in its Dynamic ETF Pool or DEP: 

  • RPV – Guggenheim S&P 500 Pure Value ETF
  • RZG - Guggenheim S&P 500 Small Cap 600 Pure Growth ETF
  • EDV – Vanguard Extended Duration Treasury Bonds (25+ yr)

Those of you who own the NAOI Dynamic Investment Bible (see below for purchase info) know how to implement and manage this powerful DI. For those who don’t let me explain how it works. On a quarterly basis, the DI ranks the ETFs in its DEP to determine which one has moved up in price most strongly during the previous quarter. That is the ONE ETF that it buys and holds until the next quarterly review when the DEP is ranked again and a trade is made if necessary. 

To get a more in-depth understanding of how DI’s work go to this link.

2016 NAOI Primary DI Performance: +22.2% !

For the calendar year 2016 the Primary DI earned an amazing +22.2%. This while during this same period traditional asset allocation portfolios with 60% stocks and 40% bonds earned returns on the order of 5.0% with higher risk!

Here are the ETFs owned for each quarter by the NAOI Primary DI and their performance while held:

  • Quarter 1: RPV +3.4%  (value stocks)
  • Quarter 2: EDV +9.62%  (treasury bonds)
  • Quarter 3: EDV -0.55%  (treasury bonds)
  • Quarter 4: RZG +8.42%  (growth stocks)

Note that the sum of these returns is 20.89% but taking compounding into effect brings the yearly return up to +22.2%. You will also note that this DI moved between stocks and bonds automatically during the year to both take advantage of market uptrends and to avoid downtrends. Dynamic Investments are nimble and virtually crash-proof!

10 Year Average Annual Returns: +30.6%

With the conclusion of 2016, the NAOI Primary Dynamic Investment for the past decade, 2007 – 2016, now has an average annual return rate of +30.6% and a Sharpe Ratio of 1.19. (The Sharpe Ratio is a measure of risk. Any number over 1.00 indicates a risk level less than the stock market.) Of course, this too is off-the-charts amazing! No asset-allocation portfolio or investment construct of ANY TYPE can boast this type of performance; only NAOI Dynamic Investments can.


Owning a traditional, static, asset-allocation portfolio in 2016 was stressful for many investors. For the entire year a contentious presidential election loomed over the market. Analysts predicted major market swings based on the election results – but analysts could not agree on any specific investing actions. I remember Mark Cuban emphatically warning that if Trump won the market would crash. Of course just the opposite happened. Still, many people went into bonds in the fourth quarter to lessen risk and as a result missed the “Trump Rally” in stocks that resulted from his election and continues as of this writing. The NAOI Primary DI got it right by owning a small-cap growth stock ETF (RZG) during the 4th quarter!

Owners of NAOI Dynamic Investments were not stressed in the least during 2016. They were able to relax in the knowledge that the market was deciding which ETF their DI would buy and which to sell – looking only at a simple market trend indicator and not worrying about daily “news”. Dynamic Investments have shown quarter-after-quarter, year-after-year that the “market” is smarter than any one analyst or group of analysts and a simple market trend signal produces far better trading results than trying to sort through the chaos of contradictory “expert” opinions that fill the financial news cycle today.

The Dynamic Investment Bible

The NAOI Dynamic Investment Bible shows you just how simple it is to implement and manage Dynamic Investments on your own or with an advisor. Go here to purchase it. Our Holiday Sale for this incredible book gives you a 40% discount if you purchase before January 16, 2017. Just use the Promo Code: “holiday” (without the quotes) during the checkout process.

The use of NAOI Dynamic Investments is your first step to a more profitable, less risky and less stressful 2017 investing year. And since Dynamic Investments love volatility the potential for significant gains is nothing short of amazing!