Composite regime: Moderate risk off

How US sectors performed when the composite regime read moderate risk off

Since Jan 3, 1983, the record reads this regime on 16.4% of trading days, across 177 episodes with a typical run of 4 sessions. Across those sessions since Dec 22, 1998, Materials did best at +15% a year and Utilities did worst at -1.7%, against +10.8% for the S&P 500.

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

The regime in the record

Share of trading days
16.4%
Separate episodes
177
Typical run
4 sessions
Longest run
108 sessions
Last seen
Sep 22, 2026
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+18.8%+12.3%+8.1%55%20.2%203
Materials XLB+15%+8.5%+6.9%53%21.5%882
Consumer Discretionary XLY+14.6%+10.4%+6.5%54%19.8%882
Industrials XLI+12.6%+9.4%+4.5%54%19.6%882
Financials XLF+10.8%+7.8%+2.8%52%22.4%882
Consumer Staples XLP+9.6%+5.3%+1.5%52%13.6%882
Energy XLE+7.2%+10.2%-0.9%51%23.4%882
Health Care XLV+6.7%+8.5%-1.4%52%15.6%882
Information Technology XLK+4.2%+12.4%-3.9%54%25.4%882
Utilities XLU-1.7%+5.4%-9.8%49%15.3%882
Real Estate XLREsince 2015-7.6%+5%-9.6%49%19.6%241

Context

AssetIn this regimeAll daysvs S&P 500Up sessionsVolatilitySessions
S&P 500 SPY+10.8%+10.2%—55%15.9%1,069
Nasdaq 100 QQQsince 1999+10.9%+13.4%+2.8%54%28.1%882
Russell 2000 IWMsince 2000+16.6%+9.8%+10.5%53%20.9%876
Long Treasuries TLTsince 2002+0.2%+1%-10.8%52%14.4%696
Gold GLDsince 2004+24.9%+11.7%+11.8%56%18.5%613

How this regime is defined

Composite regime reads Moderate risk off 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 the composite regime read moderate risk off?
Materials +15%, Consumer Discretionary +14.6%, Industrials +12.6%. Annualised mean next-session returns since Dec 22, 1998; the S&P 500 returned +10.8%.
How common is this regime, and how long does it last?
It appears on 16.4% of trading days since 1983, in 177 separate episodes. The typical run is 4 sessions; the longest lasted 108 sessions.
Is this regime in force today?
No. It was last seen Sep 18, 2026 – Sep 22, 2026. 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.