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« Cayne Out at Bear | Main | Footnote of the Year » January 8, 2008 How to Make Money Sleeping (Sort Of)Recently, two economists found that the stock market does much better when Congress isn’t in session than when it is. From 1897 to 2000, $1 invested in the Dow when Congress was in session became a grand total of $2. When Congress wasn’t in session, the $1 became $216. Well, I’ve taken this one step further. I found that the stock market does better when the stock market isn’t in session. I measured how the S&P 500 has fared in day sessions (opening bell to closing bell) versus night sessions (closing bell to the follow morning’s opening bell). For this decade, the cumulative total of the day sessions is -11.52%. The night sessions add up to a gain if 8.94%.
For the decade (and century and millennium), the total S&P 500 is still down 3.61%. Long-time readers of this blog know that I’m a proponent of the less-is-more strategy of investing. It’s not that I’m lazy. Or at least, that’s not all of it. But during the last eight years, many investors have been doing their best work when they’re sound asleep. If anyone needs me, I’m going to take a nap. Posted by edelfenbein at January 8, 2008 7:58 AM |
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