Recession risk: Low risk

How US sectors performed when the recession gauge read low risk

Since 2 Jan 1985, the record reads this regime on 31.4% of trading days, across 15 episodes with a typical run of 212 sessions. Across those sessions since 22 Dec 1998, Information Technology did best at +13.8% a year and Materials did worst at +3.4%, against +9.8% for the S&P 500.

Figures as of 6 Nov 2026 · recomputed every trading day

The regime in the record

Share of trading days
31.4%
Separate episodes
15
Typical run
212 sessions
Longest run
1,206 sessions
Last seen
6 Nov 2026
Today
In force, since 3 Aug

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+13.8%+11.8%+6%55%18.7%3,093
Health Care XLV+11.7%+8.8%+3.9%53%15.1%3,093
Consumer Discretionary XLY+8.6%+10.6%+0.8%53%17.2%3,093
Energy XLE+7.9%+10.1%+0.1%51%22.1%3,093
Utilities XLU+6.8%+5.7%-1%53%14.5%3,093
Consumer Staples XLP+5.9%+5.6%-1.9%52%13%3,093
Industrials XLI+5.1%+9.2%-2.7%52%15.9%3,093
Financials XLF+4.7%+7.9%-3.2%51%18.5%3,093
Materials XLB+3.4%+8.6%-4.4%51%18.3%3,093
Real Estate XLREsince 2015+1.5%+5.5%-1.9%52%16.4%1,162
Communication Services XLCsince 2018-30.3%+11.3%-21.7%47%22.1%494

Context

AssetIn this regimeAll daysvs S&P 500Up sessionsVolatilitySessions
S&P 500 SPY+9.8%+10.1%—54%14.9%3,307
Nasdaq 100 QQQsince 1999+17.3%+12.9%+9.5%55%19.8%3,093
Russell 2000 IWMsince 2000+7.7%+9.6%-0.1%53%18.2%2,878
Long Treasuries TLTsince 2002+2.1%+1%-5.7%52%13.3%2,878
Gold GLDsince 2004-0.2%+11.4%-7%52%15.3%2,600

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 +13.8%, Health Care +11.7%, Consumer Discretionary +8.6%. Annualised mean next-session returns since 22 Dec 1998; the S&P 500 returned +9.8%.
How common is this regime, and how long does it last?
It appears on 31.4% of trading days since 1985, in 15 separate episodes. The typical run is 212 sessions; the longest lasted 1,206 sessions.
Is this regime in force today?
Yes — in force since 3 Aug 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.