Gravitywell.Research
The crown read · All eleven, one position

Capital Cycle Clock.

Every index, standardised to a common scale and combined into one momentum × fragility position — where India sits in the capital cycle.

Current phase
Peak / Late-cycle.
Momentum116Fragility110
Momentum × Fragility · the cycle hand

Capital running hot while fragility builds — bubble-watch, late in the cycle. Both axes are centred at 100 = the 24-month average; the trail is the path since Jul 2024, red is now.

CONTRACTIONPEAKRECOVERYEXPANSIONNowMomentum (capital running hot)Fragility (system stretched)
Capital Activity Factor · the latent signal

The single common factor extracted from all eleven indices (Stock-Watson approximate dynamic factor model), Kalman-smoothed for the real-time read (Aruoba-Diebold-Scotti). It explains 86% of cross-index variance (the de-trended participation ratio puts the effective count at ~4 factors; Bai-Ng's criterion is degenerate at this sample length). Markov-switching (Hamilton) puts the high-activity (expansion) regime at 100%.

839199107115BASE 100111.2Jul 2024Oct 2024Jan 2025Apr 2025Jul 2025Oct 2025Jan 2026Jun 2026
P(expansion regime)
100%
Growth-at-Risk · 3-mo ahead GDP
6.5%
P5 (downside)
6.9%
median
7.3%
P90 (upside)

Quantile reg (ABG 2019); tail under-identified — no in-sample crisis

Top factor loadings
DCI+0.32
CCI+0.32
CSI+0.32
CAI+0.32
CGI+0.32
How the hand is built

Momentum = Formation 35% · Realisation 20% · Confidence 20% · Domestic 25%. Fragility = Stress 30% · Cost 20% · Concentration 15% · External 20% · Conditions 15%, less an Efficiency offset. The family is mixed-normalisation (some indices read “% above base”, others in std-devs), so each is re-standardised to a common z-scale before combining — the only honest way to weight them together.

Read it as a clock hand, not a dot: the direction it is turning matters more than the point. v3.1 (2026-06). See the full family and the methodology statement for limitations — the monthly path is reconstructed, and no “leading indicator” claim ships until lead-lag is validated on real point-in-time data.

The whole cycle, one hand.

The Capital Cycle Clock updates monthly with every index behind it.

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