Market Regimes
Overview
Market regimes are labels that are attached to markets to describe their general behaviour.
As such, regimes are a type of
classification.
Market regimes are unique in that generally they may not be directly observable. As an example,
some market managers will label markets as being risk on or risk off.
(That is, market participants are risk seeking, or risk averse)
However, it may be hard to determine where the boundaries of each market regime is,
and whether one was currently in one regime or the other.
Modeling Regimes
