Recession risk: Low risk

How US sectors performed when the recession gauge read low risk

Since Jan 3, 1983, the record reads this regime on 40.9% of trading days, across 110 episodes with a typical run of 21 sessions. Across those sessions since Dec 22, 1998, Information Technology did best at +15.7% a year and Consumer Staples did worst at +3.4%, against +11.2% for the S&P 500.

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

The regime in the record

Share of trading days
40.9%
Separate episodes
110
Typical run
21 sessions
Longest run
303 sessions
Last seen
Sep 23, 2026
Today
In force, since Aug 3

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
Information Technology XLK+15.7%+12.4%+7.8%55%23.1%3,287
Utilities XLU+8.9%+5.4%+1%54%16.3%3,287
Industrials XLI+7.4%+9.4%-0.5%53%16.8%3,287
Financials XLF+7.1%+7.8%-0.8%51%20%3,287
Consumer Discretionary XLY+6.7%+10.4%-1.2%52%19.8%3,287
Health Care XLV+6.6%+8.5%-1.3%51%16.2%3,287
Energy XLE+6.3%+10.2%-1.6%51%24.2%3,287
Materials XLB+3.5%+8.5%-4.4%50%19.7%3,287
Consumer Staples XLP+3.4%+5.3%-4.5%51%14.4%3,287
Real Estate XLREsince 2015+1.1%+5%-6.4%53%17%1,758
Communication Services XLCsince 2018-7.1%+12.3%-12.3%52%21.4%1,116

Context

AssetIn this regimeAll daysvs S&P 500Up sessionsVolatilitySessions
S&P 500 SPY+11.2%+10.2%—54%16.2%4,020
Nasdaq 100 QQQsince 1999+13.5%+13.4%+6.2%55%24.8%3,239
Russell 2000 IWMsince 2000+6.6%+9.8%-0.6%53%19.2%2,952
Long Treasuries TLTsince 2002+0.5%+1%-7.8%52%12.2%2,823
Gold GLDsince 2004+8.2%+11.7%+0.4%53%16.4%2,710

How this regime is defined

Recession risk reads Low risk 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 recession gauge read low risk?
Information Technology +15.7%, Utilities +8.9%, Industrials +7.4%. Annualised mean next-session returns since Dec 22, 1998; the S&P 500 returned +11.2%.
How common is this regime, and how long does it last?
It appears on 40.9% of trading days since 1983, in 110 separate episodes. The typical run is 21 sessions; the longest lasted 303 sessions.
Is this regime in force today?
Yes — in force since Aug 3, 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.