FYI: Back in January, we published a Chart of the Day (you can read it here) for Bespoke members that raised quite a few eyebrows. Investors just couldn’t get over one of our findings. What was it? It was that since 1993 when the S&P 500 tracking SPY ETF began trading, ALL of its share price gain has come from moves outside of regular trading hours. That’s right. Had you bought SPY at the open of every trading day since 1993 and sold it at the close that same trading day, your cumulative return over the entire period would be negative (-9.8% through the end of this July). On the other hand, had you bought SPY at the close of every trading day and sold it at the open the next morning, your cumulative return would be +608%. Keep in mind that this doesn’t take dividends into account — it’s only looking at price change — but adding in dividends would actually boost the performance of the “after hours” strategy.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/dissecting-the-trading-day/
