Buy the close, sell the open
This is pretty simple: buy stocks on the close and then sell them the next morning.
View all Offers
Amazon Brand - Symbol Men's Regular Polo Shirt₹ 329₹ 1199Buy On
- 52% OFF
Allen Solly Junior Boy's Girl's Jacket (ABJKEGLPT94157_Yellow_13 Years-14 Years)₹ 1799₹ 1799Buy On
- 60% OFF
Van Heusen SportJacketVSJKUBOPA53362Maroonmedium₹ 1250₹ 2499Buy On
- 59% OFF
Alan Jones Clothing Men's Fleece Hooded Hoodies (SS19-RNHD11-MUSTARD-XXL_Mustard_XX-Large)₹ 719₹ 1599Buy On
- 6% OFF
NEWPORT Mens Regular Fit Sweatshirt, Green', L, (NPMEPSS20012D05)₹ 450₹ 1799Buy On
In a note Monday afternoon, analysts at Bespoke Investment Group compared the performance of the "buy the open, sell the close" strategy to "buy the close, sell the open."
And buying stocks at the end of the day and selling them right at the market open the next morning was a big winner.
Since the January 1993 inception of the 'SPY' ETF that tracks the S&P 500, buying the index at the end of business and selling the next morning has seen a $100 investment rise more than 480%.
Buying the open and selling the close, in contrast, has lost about 20% over that same period.
As Bespoke writes, "Over this longer time frame, the market has actually lost ground during regular trading hours, and you would have been better off only owning the market outside of trading hours than you would have been simply buying and holding."
So US stocks rise when you're asleep and fall when you're actually on the desk.
The lesson, I guess, is never work. Or something like that.
- The best pay masters in the gig economy aren’t good enough
- Amazon Great Republic Sale: Top deals on recliners, sofas and more home furnishing items
- Best fashion and beauty deals during Amazon sale
- Amazon Great Republic Day Sale — Best audio deals on headphones, speakers
- GST on salaries? A new ruling can cause a lot of confusion and litigation