⚔ Geopolitics risk-off · 0–6 months
A what‑if from the future

What if China imposes full rare-earth & magnet embargo?

Beijing halts all exports of rare-earth metals and NdFeB magnets, choking defense, EV and robotics supply chains; MP and Lynas spike while industrial users scramble.

9%
our model probability
over 0–6 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 9% · 90% range 0–20% · 40 analogues · measured class supply_chain 10% in 6 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — supply_chain ≈0.2052/yr → 10% in 6 mo10%
Analyst prior · editorial share 100% of the class22%
Pooled · weight 87%9%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)9%
Published9%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 0–6 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. Beijing halts all exports of rare-earth metals and NdFeB magnets, choking defense, EV and robotics supply chains; MP and Lynas spike while industrial users scramble. The trigger decomposes into signed root‑shocks — Defense spending ▲ · Industrial demand ▲ · Risk appetite ▼ · Semiconductor supply risk ▲ · Trade tension ▲ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -2.7%
hist -1.55–-0.75% · other way +0.53% (n=12)
2TSMC TSMon Hyperliquid 📈 chartEquity▼ -2.7%
hist -2.65–-0.44% · other way -0.33% (n=12)
3Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -2.7%
hist -1.71–-0.92% · other way +1.05% (n=12)
4Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -2.5%
hist -1.62–-0.85% · other way +7.28% (n=12)
5ASML ASMLon Hyperliquid 📈 chartEquity▼ -1.9%
hist -3.87–+0.57% · other way -3.44% (n=12)
6Tech sector XLK 📈 chartEquity▼ -1.8%
hist -1.1–-0.51% · other way +0.9% (n=12)
7AMD AMDon Hyperliquid 📈 chartEquity▼ -1.8%
hist -1.45–+0.09% · other way -1.73% (n=12)
8Broadcom AVGOon Hyperliquid 📈 chartEquity▼ -1.8%
hist -1.42–+1.19% · other way +1.15% (n=12)
9Micron MUon Hyperliquid 📈 chartEquity▼ -1.8%
hist -1.77–-0.31% · other way -6.54% (n=12)
10Marvell MRVLon Hyperliquid 📈 chartEquity▼ -1.8%
hist -1.95–-0.19% · other way +0.08% (n=12)
11Solana SOLon Hyperliquid 📈 chartCrypto▼ -1.3%
hist -4.01–+0.76% · other way -8.24% (n=10)
12Alibaba BABAon Hyperliquid 📈 chartEquity▼ -1.3%
hist -1.07–+0.05% · other way -2.76% (n=11)
13MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -1.4%
hist -1.18–+0.32% · other way +18.79% (n=12)
14Qualcomm QCOMon Hyperliquid 📈 chartEquity▼ -1.2%
hist -4.09–+0.85% · other way -3.18% (n=12)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Cash / hedgeRaise cash and hold the long hedges above; this scenario is net risk-off.
For a common-man portfolio: A typical stock-heavy portfolio is at risk. Consider trimming equities, raising cash, and a small cash hedge.
Also moves (not yet on Hyperliquid): Tech sector -1.8% · Chinese yuan -1.0% · Lockheed +0.7% · Northrop +0.6% · Aussie dollar -0.6% · Turkish lira -0.5%

Historical precedent — what analogous events actually did

Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 Israel strikes Iran — Operation Rising Lion 2025-06 Trump 'Taiwan should pay for defense' chip selloff 2024-07 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 North Korea sixth nuclear test 2017-09 North Korea 'fire and fury' nuclear scare 2017-08 OPEC abandons output defense, opting for market share vs US shale 2014-11 Egyptian revolution / Mubarak uprising 2011-01 Soviet August coup attempt against Gorbachev 1991-08 Gold peaks at $850 1980-01 Iran hostage crisis / US freezes Iranian assets 1979-11 Smoot-Hawley clears the US House 1929-05 Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10 US-China extend tariff truce by another 90 days 2025-08 Trump's 50% copper tariff sends Comex copper to a record 2025-07 US and China agree Geneva tariff truce, slashing rates 2025-05 Operation Sindoor: India strikes Pakistan after Pahalgam attack 2025-05 TSMC slumps as DeepSeek roils AI-chip demand assumptions 2025-02 Micron's weak FQ2 guidance sparks a sharp December selloff 2024-12 ASML bookings-miss crash 2024-10 October 2024 Iranian ballistic-missile attack on Israel 2024-10 Hezbollah pager and device explosions across Lebanon 2024-09 Gold tops $2,500 for the first time on Fed rate-cut bets 2024-08 Megacap AI-capex doubt selloff 2024-07 India slashes gold import duty from 15% to 6% in 2024 budget 2024-07 RTX takes $3B charge on Pratt & Whitney GTF engine flaw 2023-09 Niger coup d'etat 2023-07 Wagner Group mutiny against the Kremlin 2023-06 China fires ballistic missiles into Japan's EEZ during Taiwan drills 2022-08 Netflix subscriber-loss crash 2022-04 Tin hits nominal record on LME above $48,000/t 2022-03 Meta 2022-02 Burkina Faso coup d'etat 2022-01 Didi removed from China app stores after NYSE IPO 2021-07 Mali coup d'etat 2020-08 Gold closes above $2,000/oz for the first time 2020-08 Saudi-Russia oil price war 2020-03 Huawei added to Entity List + ICT executive order 2019-05 India's Balakot airstrike inside Pakistan 2019-02
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
INTC INTCSHORT-4.8% · 5d -2.0%66%37 0.32✓ matches cascade
CNY CNYSHORT-0.4% · 5d -0.2%64%36 0.27✓ matches cascade
ETH ETHSHORT-3.7% · 5d -3.4%66%32 0.25✓ matches cascade
TRY TRYSHORT-0.8% · 5d +0.7% ↺ fades66%36 0.23✓ matches cascade
XCU XCUSHORT-1.3% · 5d -1.2%63%36 0.21✓ matches cascade
Volatility VIXLONG+4.9% · 5d +1.2%62%37 0.19✓ matches cascade
NDX NDXSHORT-0.2% · 5d -1.2%62%37 0.16✓ matches cascade
SOL SOLSHORT-3.1% · 5d -6.5%61%28 0.15✓ matches cascade
QCOM QCOMSHORT-3.2% · 5d -3.0%60%36 0.15✓ matches cascade
KWEB KWEBSHORT-1.0% · 5d -2.3%59%35 0.15✓ matches cascade
AVGO AVGOLONG+1.9% · 5d -2.0% ↺ fades58%36 0.14⚠ differs
Bitcoin BTCSHORT-3.4% · 5d -2.3%59%35 0.13✓ matches cascade
AUD AUDSHORT-0.6% · 5d -0.5%58%36 0.12✓ matches cascade
MRVL MRVLSHORT-0.9% · 5d -2.8%58%36 0.11✓ matches cascade

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.