Winter Ball

A post from Barry Ritholtz today reminded me about one of the things that got me interested in baseball investing in the first place. As Ritholtz explains it, 97% of stock market returns are earned between November 1 and April 30. That’s basically the off-season for baseball! Sure, pitchers and catchers report in mid-February and spring training games start in March, but the regular season doesn’t begin until early April. I’m not sure what the historical returns are for the month of April, but let’s just imagine that you convert cash to an S&P 500 Index Fund on the day the World Series ends and then convert that index fund back to cash on Opening Day. You’d capture most of the market returns for the year, and during the summer months you’d be in cash so you could focus on what’s really important: baseball! Here’s a chart that Mr. Ritholtz copied from Jim Stack and his team at Investech Research:

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