What if a global recession collapses the copper price?
A synchronized China-property and global recession shock craters copper below incentive levels — short Freeport, short AUD, wider credit; copper-as-growth-tell makes this the cleanest macro short in the batch. Rhymes with the Aug-2015 China 'Black Monday,' when copper broke to multi-year lows and AUD/EM sold off hard. Transmission: Australia (iron/copper to China) and Chilean/Peruvian fiscal balances take the hit; China internet de-rates. Forward: with copper already priced for an energy-transition deficit, positioning is long — a demand shock unwinds crowded length violently.
how we built this number — every step
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 6–18 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.
What it would mean
If this plays out, it is a risk-off shock. A synchronized China property and global recession shock craters copper demand, sending prices spiraling below incentive levels. The trigger decomposes into signed root‑shocks — Copper ▼ · China growth ▼ · Recession signal ▲ — 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.
| Market | Class | Projected move | |
|---|---|---|---|
| 1 | Freeport (copper) FCX 📈 chart | Equity | ▼ -2.4% hist -4.8–+0.84% · other way +0.86% (n=12) |
| 2 | Copper XCUon Hyperliquid 📈 chart | Commodity | ▼ -2.4% hist -2.19–-0.63% · other way +3.0% (n=12) |
| 3 | China internet KWEBon Hyperliquid 📈 chart | Equity | ▼ -1.1% hist -2.83–+0.83% · other way -0.3% (n=12) |
| 4 | MicroStrategy MSTRon Hyperliquid 📈 chart | Equity | ▼ -1.2% hist -2.56–+2.91% · other way +23.21% (n=12) |
| 5 | Solana SOLon Hyperliquid 📈 chart | Crypto | ▼ -1.0% hist -17.41–+8.81% · other way -2.36% (n=12) |
| 6 | Alibaba BABAon Hyperliquid 📈 chart | Equity | ▼ -1.0% hist -1.0–-0.23% · other way -2.98% (n=12) |
| 7 | Hyperliquid (HYPE) HYPEon Hyperliquid | Crypto | ▼ -0.9% model prior · unmeasured |
| 8 | Aussie dollar AUD 📈 chart | FX | ▼ -0.8% hist -1.16–+0.02% · other way -0.93% (n=12) |
| 9 | Financials XLF 📈 chart | Equity | ▼ -0.8% hist -0.63–-0.25% · other way +0.07% (n=12) |
| 10 | Nasdaq 100 NDXon Hyperliquid 📈 chart | Index | ▼ -0.8% hist -1.5–+0.16% · other way -0.31% (n=12) |
| 11 | Ether ETHon Hyperliquid 📈 chart | Crypto | ▼ -0.8% hist -12.77–+6.17% · other way +3.62% (n=12) |
| 12 | Chinese yuan CNY 📈 chart | FX | ▼ -0.7% hist -0.67–-0.16% · other way -0.75% (n=12) |
| 13 | Volatility (VIX) VIXon Hyperliquid 📈 chart | Vol | ▲ +0.7% hist -3.9–+1.96% · other way +2.35% (n=12) |
| 14 | Bitcoin BTCon Hyperliquid 📈 chart | Crypto | ▼ -0.7% hist -5.9–+3.18% · other way +4.72% (n=12) |
Probable recommendation
Why we may diverge from history
Trust history long on FCX: the analogues are clean recent risk-off windows (Evergrande, yuan-record) where FCX still rose — the cascade over-reaches shorting copper-miner equity into a demand crash.
Historical precedent — what analogous events actually did
Across 19 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.
| Asset | History says | Abnormal (20d · 5d) | Hit | n | Confidence | vs cascade |
|---|---|---|---|---|---|---|
| SOL SOL | SHORT | -16.8% · 5d -22.6% | 78% | 9 | 0.41 | ✓ matches cascade |
| ETH ETH | SHORT | -12.2% · 5d -12.0% | 73% | 11 | 0.38 | ✓ matches cascade |
| XPT XPT | SHORT | -1.5% · 5d -0.1% | 73% | 15 | 0.37 | ✓ matches cascade |
| NVDA NVDA | SHORT | -3.8% · 5d -2.1% | 73% | 15 | 0.35 | ✓ matches cascade |
| US dollar DXY | LONG | +0.6% · 5d -0.1% ↺ fades | 68% | 19 | 0.32 | · |
| MU MU | SHORT | -7.0% · 5d -4.8% | 68% | 19 | 0.30 | ✓ matches cascade |
| Volatility VIX | SHORT | -4.0% · 5d +5.0% ↺ fades | 65% | 17 | 0.24 | ⚠ differs |
| High-yield credit HYG | SHORT | -0.3% · 5d +0.1% ↺ fades | 67% | 15 | 0.23 | ✓ matches cascade |
| KR200 KR200 | SHORT | -2.1% · 5d -2.3% | 65% | 17 | 0.22 | ✓ matches cascade |
| CVX CVX | SHORT | -1.3% · 5d -2.6% | 63% | 19 | 0.22 | ✓ matches cascade |
| TSM TSM | LONG | +1.7% · 5d -1.1% ↺ fades | 62% | 16 | 0.19 | ⚠ differs |
| XLE XLE | SHORT | -0.0% · 5d -2.6% | 60% | 15 | 0.19 | ✓ matches cascade |
| MSTR MSTR | LONG | +3.8% · 5d -6.0% ↺ fades | 60% | 15 | 0.17 | ⚠ differs |
| SMH SMH | LONG | +0.0% · 5d -0.3% ↺ fades | 60% | 15 | 0.17 | ⚠ differs |
Why this probability
Copper collapse below incentive needs synchronized recession; 2026 demand resilient, tight supply, low odds despite precedents. A base‑rate‑anchored prior, continuously scored against what actually happens — not a forecast.