In this episode, host Belle Osvath, CFP®, interviews Victor Hagani, founder of Elm Wealth, about his groundbreaking research into the "overnight drift" in stock markets. Victor, a seasoned finance expert, explains how a significant portion of the stock market's returns occurs during off-hours when markets are closed, despite the higher volatility typically seen during the day. This fascinating insight into overnight trading patterns is informative for investors and financial planners. Their discussion topics include:

• Overnight Drift in Stock Markets: Victor reveals how after-hours trading primarily drives market returns, shedding light on the little-known phenomenon of overnight drift.

• Day Trading Influence on Overnight Drift: Learn how day traders contribute to the overnight drift and discover which stocks are most affected by this market behavior.

• Dynamic vs. Static Asset Allocation: Victor explains why asset allocation decisions should be active and based on expected returns and risk, rather than a passive, one-size-fits-all approach.

• Elm Wealth's ETF and Dynamic Asset Allocation: Victor shares insights into Elm Wealth's unique ETF, which uses dynamic asset allocation strategies to optimize returns and adjust exposure based on market conditions.

Resources Mentioned:

Elm Wealth: Visit Elm Wealth

Elm ETF: ELM

LinkedIn: Connect with Victor Hagani

Victor's articles on the overnight drift:

• https://elmwealth.com/night-moves-overnight-drift/

• https://elmwealth.com/night-shift/

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The Smarter Planner Podcast is a product of the Financial Planning Association National Capital Area Chapter (FPA NCA). All information is for educational and informational purposes only. Belle Osvath and the FPA NCA do not endorse or recommend any people, products, or services featured or discussed in this podcast.