Recession risk: Moderate risk

How US sectors performed when the recession gauge read moderate risk

Since Jan 3, 1983, the record reads this regime on 12.2% of trading days, across 67 episodes with a typical run of 13 sessions. Across those sessions since Dec 22, 1998, Energy did best at +21.6% a year and Financials did worst at -5.2%, against +6.6% for the S&P 500.

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

The regime in the record

Share of trading days
12.2%
Separate episodes
67
Typical run
13 sessions
Longest run
107 sessions
Last seen
Jul 31, 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
Energy XLE+21.6%+10.2%+14.4%56%19.6%465
Materials XLB+19%+8.5%+11.8%56%18%465
Utilities XLU+10.4%+5.4%+3.2%53%14.2%465
Industrials XLI+10.1%+9.4%+2.8%53%14.6%465
Consumer Staples XLP+9.6%+5.3%+2.4%53%10%465
Information Technology XLK+7.6%+12.4%+0.4%53%18.5%465
Health Care XLV+7.1%+8.5%-0.2%51%13.5%465
Consumer Discretionary XLY+2.7%+10.4%-4.5%52%15.6%465
Financials XLF-5.2%+7.8%-12.4%51%17.5%465
Communication Services XLCsince 2018—+12.3%———7
Real Estate XLREsince 2015—+5%———7

Context

AssetIn this regimeAll daysvs S&P 500Up sessionsVolatilitySessions
S&P 500 SPY+6.6%+10.2%—52%12.7%978
Nasdaq 100 QQQsince 1999+13.3%+13.4%+6.1%55%19%465
Russell 2000 IWMsince 2000+7.4%+9.8%+0.2%55%19.3%465
Long Treasuries TLTsince 2002+6.4%+1%-0.8%53%11.8%465
Gold GLDsince 2004+18.4%+11.7%+10.6%53%17.2%251

How this regime is defined

Recession risk reads Moderate 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 moderate risk?
Energy +21.6%, Materials +19%, Utilities +10.4%. Annualised mean next-session returns since Dec 22, 1998; the S&P 500 returned +6.6%.
How common is this regime, and how long does it last?
It appears on 12.2% of trading days since 1983, in 67 separate episodes. The typical run is 13 sessions; the longest lasted 107 sessions.
Is this regime in force today?
No. It was last seen Jul 31, 2026 – Jul 31, 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.