Knowledge Tree
heating
Facts (23)
Sources
Mapping Asset Returns to Economic Regimes: A Practical Investor's ... insight.factset.com Sep 9, 2025 22 facts
claimCyclical commodities, precious metals, and inflation-linked bonds achieve their best performance during 'Heating' economic regimes.
measurementThe regime model described in the FactSet Insight article exhibits a low frequency of unreasonable transitions, specifically 3% for Slowing to Heating and 4% for Stagflation to Heating.
measurementThe performance gap between cyclical and defensive equities is asymmetric across economic regimes: the return differential is +1.9% per month in 'Growing' regimes, +0.9% in 'Heating' regimes, and -1.4% in 'Stagflation' regimes.
claimCyclical industrial commodities perform best during Growing and Heating economic regimes and also perform well during Stagflation due to their ability to adjust to rising prices.
claimBroad equities, cyclical equities, and emerging market debt achieve their highest returns during 'Growing' to 'Heating' economic regimes and experience lower or negative returns during 'Slowing' to 'Stagflation' regimes.
claimIn 'Heating' economic regimes, asset returns often revert to long-term means because demand growth collides with real-world supply constraints.
claimThe empirical regime model classifies the early 1980s and the recovery from the 2008 global financial crisis as 'Growing' or 'Heating' regimes, and the periods of 1973–1975 and 1978–1980 as 'Stagflation' regimes.
claimMost asset classes demonstrate higher realized average returns during the 'Growing' to 'Heating' economic regime, potentially because demand growth in the 'Heating' phase encounters real-world supply constraints.
measurementThe return differential between cyclical and defensive equity sub-sectors is +1.9% per month in 'Growing' regimes, +0.9% in 'Heating' regimes, and -1.4% in 'Stagflation' regimes.
claimThe empirical regime model classifies the 2008–2009 downturn and the Covid-19 pandemic contraction as 'Slowing' or 'Stagflation' regimes, and the post-pandemic rebound as a 'Heating' regime.
claimThe FactSet economic regime model classifies months into four regimes: 'Heating' (increasing CLI and increasing ITS), 'Growing' (increasing CLI and decreasing ITS), 'Slowing' (decreasing CLI and decreasing ITS), and 'Stagflation' (decreasing CLI and increasing ITS).
measurementThe most frequent transitions between economic regimes are Stagflation to Slowing (18%), Growing to Heating (17%), Heating to Growing (15%), and Slowing to Stagflation (14%).
claimInflation-linked bonds outperform other asset classes in 'Stagflation' and 'Slowing' regimes relative to 'Growing' and 'Heating' regimes.
measurementWhen the regime model oscillates between regimes, 30% of these occurrences happen between Slowing and Stagflation, and 31% happen between Growing and Heating.
claimThe regime model demonstrates a clear fanning-out pattern in mean returns of asset classes when moving from safer to riskier asset classes across regime pairs, specifically when comparing Growing to Slowing and Heating to Stagflation.
measurementCash investments typically maintain a Sharpe ratio above 1 and provide stable returns in almost every economic regime except Heating.
measurementPrecious metals gain an average of 1.4% per month during the Slowing economic regime and perform well during the Heating economic regime.
measurementHigh yield credit earns its full return premium during 'Growing' and 'Heating' regimes, with 'Growing' regimes delivering an average of 0.3% more return than 'Heating' regimes, while returns turn flat to negative in 'Slowing' and 'Stagflation' regimes.
claimEmerging market credit performs well during expansionary 'Growing' and 'Heating' regimes when risk premia narrow, but returns decrease during 'Slowing' and 'Stagflation' regimes when activity stalls and risk premia rise.
claimThe U.S. dollar tends to decline and deliver negative returns during Growing and Heating economic regimes.
measurementCash maintains a Sharpe ratio above 1 in almost every economic regime except 'Heating', providing modest but stable returns.
measurementThe average duration of economic regimes in the empirical model is approximately four months, with specific averages of 4.7 months for 'Growing,' 4.5 months for 'Stagflation,' 3.6 months for 'Slowing,' and 3.5 months for 'Heating.'
The role of light in regulating plant growth, development and sugar ... frontiersin.org Jan 6, 2025 1 fact
claimThe study by Bisi et al. (2024) found that supplemental light and heating increase the growth of sweet orange plants in a winter nursery.