Research / Theme
Market Regimes & Structural Cycles
Markets do not behave continuously. They move through regimes defined by underlying economic conditions, liquidity, inflation dynamics, and policy responses.
Many investment frameworks implicitly assume stability—treating markets as environments where historical relationships persist. In practice, regime shifts alter correlations, invalidate assumptions, and change the behavior of assets simultaneously.
The most damaging portfolio losses often occur not because a position was poorly selected, but because the environment in which it was designed no longer exists.
This research theme examines how market regimes form, transition, and interact with portfolio structure. It focuses on identifying when diversification fails, when historical data becomes misleading, and when risk migrates across asset classes rather than disappearing.
ClarityX approaches regimes as structural contexts, not labels. Understanding a regime is not about predicting exact outcomes, but about recognizing which risks dominate, which strategies degrade, and which assumptions must be revisited.
This theme is operationalized through ClarityX's applied research platform, MARY, which monitors regime-sensitive signals and adapts analytical focus as conditions change.