Market liquidity: Normal

How US sectors performed when liquidity was normal

Since Jan 3, 1983, the record reads this regime on 15.3% of trading days, across 183 episodes with a typical run of 5 sessions. Across those sessions since Dec 22, 1998, Energy did best at +16.3% a year and Consumer Staples did worst at +2.5%, against +17.2% for the S&P 500.

Figures as of Sep 23, 2026 · recomputed every trading day

The regime in the record

Share of trading days
15.3%
Separate episodes
183
Typical run
5 sessions
Longest run
71 sessions
Last seen
Dec 10, 2025
Today
Not in force

Sector by sector

Annualised mean return on the session after each regime day. Sorted by the regime figure.

AssetIn this regimeAll daysvs S&P 500Up sessionsVolatilitySessions
Communication Services XLCsince 2018+56.1%+12.3%-1.1%62%15.8%109
Real Estate XLREsince 2015+36.4%+5%-7.1%57%15.9%150
Energy XLE+16.3%+10.2%+9.5%49%22.5%812
Information Technology XLK+13.1%+12.4%+6.3%53%29.1%812
Industrials XLI+11%+9.4%+4.2%51%19.9%812
Financials XLF+9.3%+7.8%+2.5%49%23.8%812
Materials XLB+6.6%+8.5%-0.2%50%22.3%812
Health Care XLV+5.9%+8.5%-0.9%50%19%812
Consumer Discretionary XLY+4.2%+10.4%-2.6%51%22.3%812
Utilities XLU+3%+5.4%-3.8%51%17.2%812
Consumer Staples XLP+2.5%+5.3%-4.3%50%16.6%812

Context

AssetIn this regimeAll daysvs S&P 500Up sessionsVolatilitySessions
S&P 500 SPY+17.2%+10.2%—53%16.1%1,351
Nasdaq 100 QQQsince 1999+12%+13.4%+7.1%53%33.8%760
Russell 2000 IWMsince 2000+15.6%+9.8%+16.4%50%21.3%590
Long Treasuries TLTsince 2002+9.1%+1%-7.3%56%13.9%370
Gold GLDsince 2004+7.3%+11.7%-14.5%52%17.4%255

How this regime is defined

Market liquidity reads Normal in the daily regime record.

Method and limits

Descriptive statistics over the published regime record — not a backtest, a forecast or advice. Each regime day is credited with the NEXT session's return, so a regime never earns the move that revealed it. Returns are ETF price returns (dividends excluded), annualised as 252 × the mean session return; volatility likewise. Sector funds start in December 1998 (Real Estate in 2015, Communication Services in 2018); the regime record starts in 1980. Labels are the engine's as currently published and are recomputed when its method improves. A figure with fewer than 60 sessions is not shown.

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Questions

Which sectors did best when liquidity was normal?
Energy +16.3%, Information Technology +13.1%, Industrials +11%. Annualised mean next-session returns since Dec 22, 1998; the S&P 500 returned +17.2%.
How common is this regime, and how long does it last?
It appears on 15.3% of trading days since 1983, in 183 separate episodes. The typical run is 5 sessions; the longest lasted 71 sessions.
Is this regime in force today?
No. It was last seen Nov 28, 2025 – Dec 10, 2025. The daily nine-axis reading is on the Regime Radar.
Is this a backtest?
No. It describes how assets behaved on the session after each day the regime was read, with no portfolio, costs or selection. A backtest would test a rule; this records a history.