Can Data Implied R. Time Business Cycle Identification Enhance Asset Allocation?

  • Economists typically like to identify multiple stages or states of the economic cycle

  • An Unsupervised Clustering Machine Learning Algorithm, k-means clustering, is used to define states in real time

  • Asset class performance is conditioned on different states of the business cycle

John Galakis
John Galakis

Head of Research - - Senior Investment Strategist

Nicolas Skourias
Nicolas Skourias

Senior Economist and Market Analyst

Iniohos Advisory
10 September 2021
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