Definition
A risk-on regime is a market state where investors are willing to pay for growth, cyclicality and duration. A risk-off regime is a state where capital preservation, liquidity and balance-sheet quality matter more than upside optionality.
Signals to watch
The cleanest read does not come from one asset. Watch whether equities, credit spreads, volatility, the dollar, real yields and oil confirm the same direction. When these signals disagree, position sizing matters more than labels.
How EB Labs reads it
The macro regime score separates state, trend and market confirmation. This keeps a strong equity tape from automatically overriding tighter rates, weaker liquidity or unstable commodity pressure.