Independent Research · Built by retail, for retail Scored every trading day
Cliff Radar Capital, LLC
Downside Risk Protection · The People's Risk Desk
The People's Risk Desk · Built by retail, for retail

The pros get the phone call. Retail gets the headline. Not anymore.

We never touch your money. We built the risk desk the institutions keep for themselves — and handed it to you. Real market risk in real time, the sectors and themes trending up and down, a daily focus setup, and your portfolio graded on demand. The kind of institutional risk desk that usually costs 1–3% of your assets a year — offered here for a flat monthly subscription. Built by us, for us, shared with you.

Why this exists · Nobody was coming to warn us
01 · The Wound

We rode markets over the edge like everyone else — fully invested at the top, reading about the regime change in the news, after the fall. The institutions? They got the phone call. They had risk desks. We had headlines and hope.

02 · The Build

So we built what we couldn't buy: a macro engine that scores the whole economy into one regime read, a set of crisis tripwires, and a scoring core that grades every stock on momentum and exhaustion — the pillar designed to fire before a breakdown shows in price.

03 · The Share

It worked well enough that keeping it to ourselves felt wrong. Retail can't afford institutional protection — so we priced ours like a streaming subscription and published the entire architecture. No black box. No guru. Just the machine, daily.

§ 01
Fifty years, six recessions
Backtest · 1976–2026

Six recessions in fifty years. The machine was already defensive for five of them.

Our macro engine scores the whole economy into one number, and that number commands an 8-rung ladder — how much risk the models are allowed to carry. Here it is recomputed across 604 months of history, laid against the S&P 500. Shaded columns are the market's real peak-to-trough decline around each recession. One question: what was the machine saying while the market was topping — and what would listening have saved you?

−50% Losses AvoidedTHE 2008 CRASH: −57% BECAME −7%

In 2008 the S&P 500 lost 57% in one of the worst recessions on record. The EMP engine saw the stress building and stepped the models down — Take Profits at the October top, walked to Full Defensive before Lehman. A portfolio following that prescribed exposure would have fallen just 7%: a 50-percentage-point swing. And it isn't a one-off — across six recessions since 1980, an average 34% market decline came out as 11% at the machine's own exposure. Hypothetical model performance.

S&P 500 · LOG SCALE · MONTHLYEMP ECONOMY HEALTH · COVERAGE-NORMALIZED · SHADED BY REGIME BAND6,9571,00010085%25% Full Risk-On · 81.9%Build Risk · 67.2%Stay Invested · 65.4%Take Profits · 59.9%High Caution · 54.7%Sell Alert · 42.3%Full Defensive · 35.1% 12345619801990200020102020
S&P 500 (log)EMP health scoreMarket peak → troughZones: green = risk-on rungs · amber = caution · red = defensiveNumbers mark each market peak ↓
1
1980 · market peak 1980-02-13 · panel coverage 58%

The 1980 Recession

At the top, the machine said
Full Defensive · 37.4%→ models 10% invested

Volcker's rate shock. Before the market turned, EMP was already at Full Defensive — a tenth invested. The decline happened almost entirely without you.

S&P 500 fell-17.1%
Following EMP-1.8%
Avoided15.3 pts
2
1981–82 · market peak 1980-11-28 · panel coverage 58%

The 1981–82 Recession

At the top, the machine said
Full Defensive · 42.2%→ models 10% invested

The double-dip. Full Defensive at the peak and defensive for twenty months. A 27% index decline came out as a 2% scratch.

S&P 500 fell-27.1%
Following EMP-2.2%
Avoided24.9 pts
3
1990–91 · market peak 1990-07-16 · panel coverage 64%

The 1990–91 Recession

At the top, the machine said
Sell Alert · 53.3%→ models 25% invested

Oil shock and credit stress. Sell Alert at the top — a quarter invested — so the drawdown landed on a book already mostly in cash.

S&P 500 fell-19.9%
Following EMP-4.0%
Avoided15.9 pts
4
2000–02 · market peak 2000-03-24 · panel coverage 72%

The Dot-Com Bust

At the top, the machine said
Sell Alert · 48.4%→ models 25% invested

Sell Alert in March 2000 while the crowd bought the dip — and nearly perfect through March 2002. Then the recovery gate began flipping monthly: a credit-data gap had disarmed the guard that should have stopped it.

S&P 500 fell-49.1%
Following EMP-22.2%
Avoided26.9 pts
5
2007–09 · market peak 2007-10-09 · panel coverage 79%

The Great Financial Crisis

At the top, the machine said
Take Profits · 63.8%→ models 70% invested

The best call in the record. Take Profits at the October 2007 top, walking down to Full Defensive before Lehman. The index lost 57%. The machine's path lost 7%.

S&P 500 fell-56.8%
Following EMP-7.3%
Avoided49.5 pts
6
2020 · market peak 2020-02-19 · panel coverage 86%

The COVID Crash

At the top, the machine said
Build Risk · 67.4%→ models 100% invested

The honest one. At the February 19 peak EMP said Build Risk — fully invested. A pandemic is not in macro data. It cut hard afterward, but it reacted; it did not warn. You would have felt nearly the whole crash.

S&P 500 fell-33.9%
Following EMP-27.6%
Avoided6.3 pts
§ 01·B
Fifty-five years, eight recessions
Backtest · 1970–2026

Eight recessions in fifty-five years. The model was above 50% before seven of them.

Alongside the EMP regime engine above, our recession engine collapses the credit cycle, the yield curve, the labor market and the housing pipeline into one number: the probability of a U.S. (NBER) recession beginning within twelve months. Here it is recomputed across every month since 1968, laid against the S&P 500. Shaded columns are the NBER recessions. One question: what was the model saying while the market was still climbing — and how much warning would listening have bought you?

7 of 8 Recessions PredictedRECESSIONS FLAGGED ABOVE 50% BEFORE ONSET · AVG PEAK 89%

Our recession-probability panel flagged 7 of the last 8 U.S. recessions before they began — its probability pushed above the 50% line a median of ten months ahead of onset, at an average peak of 89%. The lone miss was 2020: a pandemic is invisible to macro data, and the model topped out at 48% the month before lockdowns.

100 1,000 0% 25% 75% 100% 50% 1 2 3 4 5 6 7 8 17% today 1970 1980 1990 2000 2010 2020 S&P 500 · LOG SCALE · MONTHLY CLOSES · = THE 50% WARNING FIRED HERE CLIFF RADAR RECESSION PROBABILITY · 12-MONTH · MONTHLY 1970–2026
S&P 500 · log scale · monthly closes Recession probability · monthly 50% line NBER recession 50% warning fired (on the S&P) Numbered recession onsets
Probability is the blended 12-month model recomputed monthly with publication lags enforced — the number you could actually have seen in real time. The 2022–24 hump is a known false alarm from the sustained curve inversion (disclosed in full in the methodology at the bottom of this page).
1
1969–70 · Onset Jan 1970 · Crossed 50% Nov 1969

The 1969–70 Credit Crunch

In the year before, the model said
Peaked 59% · Crossed 50% Nov 1969

The model climbed out of the teens through late 1969 and breached 50% in November — two months before the downturn began — dipping briefly in December before surging as the recession took hold. A tight but correct call at the very start of the data.

Peak probability59%
Crossed 50%Nov 1969
Lead2 mo
2
1973–75 · Onset Nov 1973 · Crossed 50% Jul 1973

The Oil-Shock Recession

In the year before, the model said
Peaked 94% · Crossed 50% Jul 1973

Flat near 2% through the spring, then a vertical ramp as the curve inverted and permits rolled over: 65% by July, 85% by August, 94% by October — four months of warning before the November 1973 onset.

Peak probability94%
Crossed 50%Jul 1973
Lead4 mo
3
1980 · Onset Jan 1980 · Crossed 50% Mar 1979

The 1980 Credit Controls

In the year before, the model said
Peaked 99% · Crossed 50% Mar 1979

Volcker's first squeeze. The probability was above 50% from March 1979 and pinned near 99% for months before the January 1980 onset — ten months of warning.

Peak probability99%
Crossed 50%Mar 1979
Lead10 mo
4
1981–82 · Onset Jul 1981 · Crossed 50% Sep 1980

The Volcker Double-Dip

In the year before, the model said
Peaked 98% · Crossed 50% Sep 1980

The messy one. The model stayed 90–100% through the 1980 recession, cooled in the gap between the dips, re-fired to 66% in September 1980 and 98% by November, eased into the 20s–30s that spring, then jumped back to 80% in July 1981 — the month the second dip began.

Peak probability98%
Crossed 50%Sep 1980
Lead10 mo
5
1990–91 · Onset Jul 1990 · Crossed 50% Apr 1989

The Gulf-War Recession

In the year before, the model said
Peaked 78% · Crossed 50% Apr 1989

Flagged early — above 50% from April 1989 into early 1990 — then dipped in the spring before re-surging to 78% in June 1990, the month before the oil-price spike tipped the economy over.

Peak probability78%
Crossed 50%Apr 1989
Lead15 mo
6
2001 · Onset Mar 2001 · Crossed 50% Apr 2000

The Dot-Com Recession

In the year before, the model said
Peaked 96% · Crossed 50% Apr 2000

Crossed 50% in April 2000 as the curve inverted and hit 96% by that November — eleven months before the recession began in March 2001.

Peak probability96%
Crossed 50%Apr 2000
Lead11 mo
7
2008–09 · Onset Dec 2007 · Crossed 50% Nov 2006

The Global Financial Crisis

In the year before, the model said
Peaked 97% · Crossed 50% Nov 2006

First crossed 50% in November 2006, then from January 2007 held 85–97% through the entire year — thirteen months of elevated warning before the December 2007 onset of the deepest recession in the sample.

Peak probability97%
Crossed 50%Nov 2006
Lead13 mo
8
2020 · Onset Feb 2020 · Never Crossed 50%

The COVID Shock — the miss

In the year before, the model said
Peaked 48% · Never Crossed 50%

The one it could not see. Macro inputs were benign into 2020; the probability peaked at 48% in February, the month before lockdowns. No model built on slow-moving economic data can forecast a pandemic — shown here in full candor.

Peak probability48%
Crossed 50%Never
LeadNone
§ 02
The regime, before anything else
Sample Brief · July 8, 2026

This is the actual risk read from our July 8, 2026 Sample Brief — where the danger sits right now: the macro regime, live crisis tripwires, and the odds of recession. It's a frozen sample. Members get this rebuilt with today's data, every trading day before the open.

● Frozen · Jul 8 ◢ Command Deck · EMP — Edge Market Pulse
62.4% Take Profits
CrisisPeak health
Economy strength places today in Take Profits — 4th of 8 regime bands.
Recession probability · 12-mo
27%
Elevated — not alarming
Cliff Radar model
Crisis tripwires · 2 active
  • CPI YoY > 3.5%
  • CAPE>38 & ECY<1.0%
VIX
16.13
HY OAS
2.75%
Model invested
84.9%
Names scored
825
S&P 500
7,504
10Y
4.55%
Open the interactive Sample Brief → Subscribe for today's live read → Sample data · frozen Jul 8. Today's is members-only.
§ 03
What we do
Regime first · Stocks second · Exhaustion always

Regime first. Stocks second. Exhaustion always.

One direction, four stages: the economy gets scored before a single ticker is considered, and every stock gets graded inside that weather.

Stage 1 · Signal
EMP

Edge Market Pulse scores the economy across a broad macro panel and prints one of 8 regime bands.

Stage 2 · Map
PAM

The regime becomes a risk budget: how much invested, how much cash — before any stock picking.

Stage 3 · Eyes
BSM

One trusted snapshot: the full universe, a battery of technical signals per name, hard gates against stale data.

Stage 4 · Triggers
BAM · CAM

Two selection models — disciplined and conviction — fill the budget with individually scored names.

MMomentum · 40

Is it moving with conviction?

Trend, volume expansion, slope structure. Finds the strong names — entry quality.

LLeadership · 26

Is it leading its own theme?

Relative strength, 52-week position and theme-relative return. Ranks a name inside its cohort — leaders over laggards.

EExhaustion · 34

Rested — or running on fumes?

The early-warning pillar, built to fire before the breakdown shows in price. Downside protection isn't a slogan here; it's a third of the score.

See the full architecture — nothing is hidden →

§ 04
Go deeper — pick your door
Five entries
§ 05
Why you can trust it — trust isn't claimed, it's structured
Four guardrails
Our capital goes first.

The pipeline was built to protect our own money, and it still does — every score you read is one we act on ourselves. Alignment, disclosed.

The architecture is public.

Every stage, every pillar, every guardrail is documented on The System page. If a research shop won't show you the machine, ask why.

Losers stay on the record.

Scores are dated, archived, and never quietly rewritten. A warning system you can't audit is just marketing. See the record →

No hype, by design.

Impersonal model output, plain-English narration, and disclaimers on every page. We'd rather under-promise than manage your disappointment.

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Tickers scored
0
Investable themes
0
Regime bands
0
Pipeline stages
0
Scoring pillars
0
Strength scale (0–100%)
The bottom line

You can't afford an institutional risk desk.
Good. Neither could we.

Start free. Read the radar for a while. Upgrade when it earns your trust — that's the only way we'd want it.

Want proof before you even sign up? Join free to read the Weekly Radar →

§ A
Backtest methodology & disclosures
Applies to § 01 and § 01·B
§ 01 · The EMP drawdown backtest — how those numbers were produced. This is a backtest: the EMP engine recomputed monthly over 1976–2026 macro history. Every index figure is a real peak-to-trough decline measured on daily closing prices of the S&P 500 (the 2007–09 line, for example, runs from 1,565.15 on 2007-10-09 to 676.53 on 2009-03-09). The "following EMP" figure holds the index at exactly the equity exposure EMP's band prescribed, rebalanced monthly, with each month's return governed by the prior month's reading — so the simulation never acts on information it could not have had. It pays no commissions, taxes, spreads or slippage, and earns nothing on cash; real cash yielded double digits in 1980, so the cash assumption is conservative while the cost assumption is optimistic. Band thresholds were fit on part of this history and validated on a hold-out set, which means this chart shows the rules working on data that helped shape them — the single most important caveat here. This is engineering validation, hypothetical by nature, and categorically separate from our live Track Record, which began May 22, 2026, publishes every trading day, and can never be backfilled.
§ 01 · What the history could not tell us. A backtest is only ever as good as the data put into it, and ours is incomplete the further back it reaches. Panel coverage runs from about 50% of indicators in the 1970s to 90% today — each card above prints the coverage behind that specific call, and the 1980–82 readings rest on barely half the panel. Scores are normalized across whatever indicators actually exist in a given month; an indicator with no data is excluded rather than guessed, and never counted as a fired crisis tripwire. High-yield credit spreads are the starkest case: in April 2026 our data provider truncated that series to a rolling three-year window under its licensing terms, deleting nearly three decades of history. Every call above except the most recent was therefore scored with no credit-spread input at all — including 2007–09, a crisis that was fundamentally about credit. We disclose that rather than quietly substitute a proxy. Macro data is also revised and restated after the fact, and several early series are proxies — a figure available to us today was not always available in real time. The engine is also evolving: this run reflects the version scored across history, while the live model adds refinements no backtest can retroactively earn credit for. Treat everything above as an estimate of what the rules would have done, not a record of what anyone did.
§ 01·B · The recession-probability backtest — how it is built and how well it scores. The engine is a ridge-logistic blend of two lenses — a Long-History lens fit from 1968 (eight recessions, including the 1970s inflation type) and a Credit-Cycle lens fit from 1990 that adds bank lending standards (SLOOS). Inputs are the 10-year/3-month term spread, the Baa credit spread and its 3-month change, building-permit growth, a real-time Sahm-rule labor signal, and heavy-truck sales — all lagged to their true publication dates, so the backtest reflects information available at the time, not hindsight. Validation is expanding-window walk-forward, refit annually and scored only on months the model had not yet seen: AUROC 0.896 out-of-sample (1997–2025), Brier score 0.126, and a base-leg AUROC of 0.863 since 1980 against 0.685 for the yield curve alone. Seven of eight recessions crossed the 50% line before onset; the S&P series shown is monthly closes (via FMP), recession dating is NBER's.
§ 01·B · The false alarm, disclosed. Every curve-based recession model — including this one — produced a sustained false signal during the 2022–24 yield-curve inversion, the visible hump on the chart with no shaded recession behind it. That is precisely why the output is published as a probability rather than a binary siren, and why the 50% line is a reference, not a trading rule. The lenses were fit on parts of this same history, so the in-sample portions of the chart show the rules working on data that helped shape them. The current live reading — 17% as of the June 2026 data month — is produced by the same engine and updates as new data publishes.
The limits of both backtests, stated plainly. Results computed on history are estimates, not experience: no one earned these returns, no account traded this way, and nothing here is a promise, projection, or guarantee of any future result. A model that warned before past recessions can stay quiet before the next one — the 2020 cards in both sections show exactly that happening. Cliff Radar Capital, LLC is a publisher of general market research, not an investment adviser, broker-dealer, or fiduciary to anyone. Nothing on this page is investment advice, a recommendation, an offer or solicitation, or personalized to your circumstances, and no adviser–client relationship is created by reading it. Do not rely on it as the basis for any investment decision; consult a licensed professional who knows your situation. All investing involves risk, including the total loss of principal. To the fullest extent permitted by law, Cliff Radar Capital, LLC, its members and contributors disclaim all warranties, express or implied, as to the accuracy or completeness of this analysis and accept no liability for any loss or damage of any kind arising from its use. You use it at your own risk.