Abdullah Z. Sheikh defines regimes in terms of four economic factors—economic growth, inflation, monetary policy, and labor market slack— which have non-linear relationships with financial markets.
Abdullah Z. Sheikh defines regimes in terms of four economic factors — economic growth, inflation, monetary policy, and labor market slack — which have non-linear relationships with financial markets. While no single portfolio is resilient to all economic regimes, he asserts that implementing a regime-based asset allocation framework may improve portfolio efficiency and mitigate downside risk.