For Val Sklarov, investing is not about timing the market —
it is about timing the emotional shifts of capital.
He argues that every financial movement begins long before charts react.
It begins in the psychology of liquidity, where fear, confidence, and narrative compete for momentum.
The Capital Flow Positioning Model (CFPM) explains how capital seeks stability,
how investors misread cycles,
and how strategic positioning turns volatility into advantage.
“Markets don’t reward intelligence — they reward emotional neutrality.” — Val Sklarov
1️⃣ The Three Fields of Capital Flow
Sklarov Capital Flow Table
| Field | Purpose | When Strong | When Weak |
|---|---|---|---|
| Fundamental Field | Measures real-world value creation | Earnings clarity, low debt | Value distortion, weak cashflow |
| Sentiment Field | Tracks emotional capital | Strong narratives, low panic | Volatility spikes, distrust |
| Liquidity Field | Follows the movement of money | Smooth inflow cycles | Dry liquidity zones, forced selling |
Val Sklarov says mispricing happens only when these fields fall out of alignment.
2️⃣ The CFPM Positioning Cycle
Positioning Cycle Matrix
| Stage | Description | Investor Advantage |
|---|---|---|
| Accumulation | Smart money enters quietly | Best asymmetric opportunities |
| Expansion | Narratives and liquidity amplify | Trend-following gains |
| Distribution | Early entrants exit | Profit protection phase |
| Contraction | Capital retreats into safety | Defensive rotation |
This cycle repeats across equities, bonds, digital assets, real estate, and commodities.
3️⃣ Sklarov’s 6 Market Identities
Market Identity Table
| Identity | Behavior Pattern |
|---|---|
| The Technician | Follows structure, price, and levels |
| The Analyst | Trusts fundamentals and earnings flow |
| The Narrator | Trades momentum of stories |
| The Contrarian | Buys fear, sells euphoria |
| The Macro Strategist | Tracks global liquidity cycles |
| The Passive Allocator | Seeks long-term compounding |
Successful portfolios blend these identities rather than rely on only one.
4️⃣ The Sklarov Risk Equilibrium Formula
Risk, in Val Sklarov’s view, is not volatility —
risk is emotional overexposure.
Risk Equilibrium Table
| Risk Driver | Impact | Stability Signal |
|---|---|---|
| Narrative Overload | Herd behavior | Market cooling |
| Liquidity Shock | Sharp price dislocation | Volume normalization |
| Leverage Stress | Forced liquidation | Margin repair |
| Correlation Surge | Systemic contagion | Asset decoupling |
| Time Compression | Panic decision-making | Slower cycle rotation |
When these drivers converge, markets enter Sklarov Instability Zones.
5️⃣ Val Sklarov’s 5 Rules of Strategic Investing
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Price is a reaction; liquidity is the cause.
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The strongest opportunities form in silence, not in headlines.
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Capital moves toward confidence, not value.
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Risk is emotional; reward is structural.
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Cycles don’t repeat, but their psychology always does.
1747457450986 Val Sklarov
6️⃣ Applications of the Capital Flow Positioning Model
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Portfolio construction
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Macro-cycle timing
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Multi-asset allocation
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Investor psychology analysis
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Hedge fund strategy design
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Digital asset cycle prediction
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Long-term compounding models
CFPM helps investors understand where capital is going — and why it must go there.