In The Dynamic Investment Bible you will learn a new and approach to investing in the form of Dynamic Investment Theory (DIT), an approach that creates Dynamic Investments (DIs) as illustrated on this site here. DIT doesn't modify MPT, it replaces it.

DIT was developed based on the only thing we know for sure about equity markets; that they are cyclical. They move up and down over time. And that different assets, markets and market segments move up and down at different times. For example, when stocks go down bonds typically go up. This means that at all times there exists positive returns potential in the market. 

It just makes logical sense then to design portfolios that are capable of detecting areas of the market that are moving up and buying into them while selling or avoiding those that are moving down. But can a portfolio be built to automatically do this? This is the question I set out to answer in 2008 when I started my search for a better approach to investing.

After 5+ years of research I was satisfied that I had answered this question in the positive with the discovery and development of Dynamic Investment Theory and the creation of Dynamic Investments. These are the first investments in market history that automatically monitor market trends and buy only into areas that are moving up while avoiding or selling areas that are moving down. 

What You Will Learn in The Dynamic Investment Bible

In The Dynamic Investment Bible you will learn Dynamic Investment Theory and witness first-hand how it was developed from a hypothesis to a working methodology. You will see that it was created using scientific methods and empirical observations, not based on subjective human judgments that are source of much that is wrong with investing today.

You Will Learn Why Dynamic Investment Theory Was Created

In the book you will learn that DIT was developed to meet three goals. First I wanted to create an investing approach that works in modern volatile markets in order to replace MPT that does not. Second I wanted to meet the the goals of an investing public that is not well served by the financial services industry today. Third, I wanted to jump-start the evolution of investing that has been stuck in the "mud" of MPT for close to seven decades.

In the book you will learn exactly how I met all of these goals with the development of DIT and Dynamic Investments.

You Will Learn How to Create Dynamic Investments

In the book you will learn that Dynamic Investments are simple yet very powerful investments that strive to hold only equities that are moving up in current market conditions and to sell or avoid those that are moving down. To do this all Dynamic Investments have the following structure and components as first introduced here.

Here are the components that can be modified:

Dynamic ETF Pool (DEP) - Here is where the DI designer places a diversified group of ETFs for the areas of the market where the DI will search for positive returns. A typical DEP will hold from two to perhaps a dozen ETFs.

Review Period - This is how often the DI samples the market to determine if the ETF it holds should be changed based on market trends. During a Review the DEP is ranked using a Trade Signal / Trend Indicator to determine which ETF in the DEP is moving up in price most strongly. That is the ETF that will be owned until the next Review.

Trade Signal - This is a simple price chart indicator that measures the direction and strength of the price trend for each ETF in the DEP. Only the one with the strongest current upward trend is purchased and held until the next Review. Of course if the "winner" is the same as the one currently being held then no trade in necessary.

In The Dynamic Investment Bible you will learn how to change these components in order to build your own Dynamic Investments.

You Will Learn that Dynamic Investments DO Work in Modern Markets

DIs sound almost too simple. When compared to the complicated customization process involved in designing MPT portfolios to meet people's risk tolerance, working with DIs is a piece of cake. They have a universal goal of capturing the positive returns that exist somewhere in the market at all times and with minimal risk. As a result they are investment "products" that meet the needs of the entire investing public and can be bought off-the-shelf. As a result they "productize the world of investing" a goal that investing gurus have been seeking for decades. They haven't found it, Hevner has and so will you by reading the book. And even the simplest NAOI Core DI that only rotates between a Stock ETF and a Bond ETF earned close to +25% per year during the volatile period from 2007 to mid-2016 - a period of almost 10 years!

DIs sound too good to be true, but you will learn in The Dynamic Investment Bible that they are real and that they work as advertised.

You Will Learn How To Implement and Manage Specific DIs

The Dynamic Investment Bible is not all theory. Once I have explained the scientific principles that form the foundation for Dynamic Investment Theory I discuss in the book how to put the theory to practical use. I specifically discuss how to implement and manage the following simple Dynamic Investments that you can take advantage of immediately after finishing the last chapter.

The NAOI Core DI - The Core Dynamic Investment is the simplest DI possible. Here are its components and performance over the past decade:

  • DEP (2 ETFs) - Stock ETF, Bond ETF
  • Review - Quarterly
  • Trade Signal - Simple Trend Indicator (revealed in the book)
  • Performance: Average Annual Return from 2007 to mid-2016: +24.5%

The NAOI ECore DI - The Enhanced Core DI adds one more ETF to the DEP to increase the scope of the DI's search for positive returns. 

  • DEP (3 ETFs) - Stock ETF, Bond ETF, ETF3 (revealed in the book)
  • Review - Quarterly
  • Trade Signal - Simple Trend Indicator (revealed in the book)
  • Performance: Average Annual Return from 2007 to mid-2016: +25.0%

The NAOI Primary DI - This is the DI that I recommend that most of my students use. The performance shows you why.

  • DEP (4 ETFs) - Stock ETF, Bond ETF, ETF3, ETF4 (revealed in the book)
  • Review - Quarterly
  • Trade Signal - Simple Trend Indicator (revealed in the book)
  • Performance: Average Annual Return from 2007 to mid-2016: +32.0%

These are investment returns the likes of which the investing world has never seen. And you will read in the book that they come without excessive risk. You will learn that higher returns do not require exposure to higher risk. Higher returns result from adding more ETFs to the DEP and expanding the area it searches for positive returns potential!

You Will Learn how to Design Your Own DIs

There are an unlimited number of Dynamic Investments that can be created. In the book you will learn the variables that can be changed and you create unique DIs on your own. Perhaps you can design one that produces better performance (return + risk) than the ones listed above.

You Will Learn to Use DIs in a Variety of Ways

You will learn in The Dynamic Investment Bible that the world of DIT can coexist quite nicely with the world of MPT. You can "boost" the returns of any traditional MPT portfolio by simply treating a Dynamic Investment as another asset class and giving it an allocation of money in the portfolio. You can create a default 401(k) investment using a Market Biased Dynamic Investment that uses elements of both the MPT and DIT approaches. And you can create portfolios containing multiple DIs to add anther layer of diversity. Refer to the DI Products page on this site for more information on the variety of products you will be able to build and use immediately after finishing the book. DIT enables a vast new world of opportunities without completely destroying the world of investing as it exists today.

But as people begin to use DIs they will demand them and MPT methods will fade away. DI varieties simply make the transition easier and more gradual.

You Will Learn a Better Way to Invest in Your 401(k) and Other Retirement Plans

Most people who attend NAOI investing education classes are there because they don't know how to take full advantage of their 401(k) Plans. They complain about inadequate education from plan providers, limited investment choices, inadequate portfolio design recommendations, high expenses and a general feeling of anxiety that they are putting their savings at risk by contributing to a Plan that they don't understand. NAOI Dynamic Investments and Dynamic Market-Biased Portfolios solve all of these problems. This topic is discussed in more detail at this link.

You Will Learn what the Future of Investing Looks Like and Demand It

Most investors assume that the way we invest today is as good as it gets. We simply accept portfolios using asset allocations that match our risk profile and then hold them for the long term. We see 10% returns as something to celebrate and see portfolio losses as just a cost of doing business. And we passively pay financial "experts" for their advice as we assume that they have some type of exceptional knowledge about market movements that we, as individuals, do not.

In The Dynamic Investment Bible you will learn that most if not all of this is wrong. And you will read about a better future of investing that produces much higher returns with far less risk and lower expenses. You will learn that there is a better way to invest than we are forced to deal with today and you will have the knowledge needed to demand it from the financial services industry. If they don't listen, you will know how to implement this better approach on your own. In the book you will see very clearly that in the future of investing as described here you will be fully capable of taking personal control of your financial future and aiming for financial goals that today's "experts" will say are impossible. 

You Will Learn How to Invest and Relax

Investing is stressful for the average person. The interest rates on "safe" bond investments are practically zero. So investing returns only exist in the realm of stocks and, of course, these are risky investments. Many people cannot afford to take this risk as their savings are minimal. So they stay out of the market and simply accept a less comfortable life style. A major reason for this unacceptable state of affairs is that MPT portfolios simply make investing not worth the risk. They neither enable an individual to take advantage of positive returns that exist in the market nor protect them from market downtrends or crashes.

Dynamic Investment Theory changes the entire investing environment. The average investor of the future will simply select a Dynamic Investment "product" off-the-shelf and hold it for the long term. DI holders can then relax in the knowledge that their DI is constantly monitoring the market and making changes to the equity it holds in order to both to capture positive returns, minimize losses and avoid market crashes completely. DIs will find and invest in equities that are going up and get out of them when they start to go down. Should the market start to crash a DI will sell before significant money is lost and even automatically switch to bonds to profit from a stock crash. 

The DI investor does not have to worry about such things as the economy, world events, corporate earnings, government intervention and/or expert predictions. DIs are taking all all of these elements and more into account by simply sampling market movements in a variety of market areas and buying into those that are moving up. Dynamic Investment Theory recognizes and takes advantage of the fact that the market is far smarter than any human who tries to analyze it.

And, as a final bonus, DI investors of the future need not fear falling victim to investing schemes and scams. They simply need to ascertain that the investing product(s) that they buy are NAOI certified Dynamic Investments and then relax. After reading The Dynamic Investment Bible they will be full capable of doing so.

After you read The Dynamic Investment Bible you will wonder why anyone would invest in anything but Dynamic investments. You will wonder why people still listen to highly paid market "experts" when their predictions are little more than guesses. You will wonder why people celebrate accept portfolios that purposely hold both winning and losing investments at the same time. 

And, perhaps for the first time in your investing career, you will see the world of  investing as a place of opportunity and optimism as opposed to seeing it as the realm of risk, fear and potential fraud that it is today. And you will be excited to participate in this new Dynamic Investment based world of investing!