Composite regime: Strong risk off

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

Since Jan 3, 1983, the record reads this regime on 15.7% of trading days, across 197 episodes with a typical run of 5 sessions. Across those sessions since Dec 22, 1998, Utilities did best at +22.8% a year and Financials did worst at +0.6%, against +7.4% for the S&P 500.

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

The regime in the record

Share of trading days
15.7%
Separate episodes
197
Typical run
5 sessions
Longest run
41 sessions
Last seen
Aug 21, 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
Utilities XLU+22.8%+5.4%+16.5%55%17.4%1,333
Real Estate XLREsince 2015+12.3%+5%+4.5%53%21.5%532
Industrials XLI+12%+9.4%+5.7%52%21.2%1,333
Consumer Staples XLP+11.3%+5.3%+5%52%14.5%1,333
Materials XLB+10.4%+8.5%+4.2%51%23%1,333
Energy XLE+9.1%+10.2%+2.8%52%27.4%1,333
Information Technology XLK+7.5%+12.4%+1.3%52%26.1%1,333
Consumer Discretionary XLY+4.6%+10.4%-1.7%51%23.4%1,333
Communication Services XLCsince 2018+3.7%+12.3%-4.8%54%24.6%390
Health Care XLV+3.3%+8.5%-3%52%17.3%1,333
Financials XLF+0.6%+7.8%-5.6%51%25.2%1,333

Context

AssetIn this regimeAll daysvs S&P 500Up sessionsVolatilitySessions
S&P 500 SPY+7.4%+10.2%—52%18.2%1,479
Nasdaq 100 QQQsince 1999+8.8%+13.4%+3.3%53%27.1%1,330
Russell 2000 IWMsince 2000+6.4%+9.8%+1.3%52%23.5%1,307
Long Treasuries TLTsince 2002+7.4%+1%-0.3%53%14.7%1,214
Gold GLDsince 2004+3.3%+11.7%-1.1%50%17.1%1,076

How this regime is defined

Composite regime reads Strong 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 strong risk off?
Utilities +22.8%, Industrials +12%, Consumer Staples +11.3%. Annualised mean next-session returns since Dec 22, 1998; the S&P 500 returned +7.4%.
How common is this regime, and how long does it last?
It appears on 15.7% of trading days since 1983, in 197 separate episodes. The typical run is 5 sessions; the longest lasted 41 sessions.
Is this regime in force today?
No. It was last seen Aug 17, 2026 – Aug 21, 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.