📈 Markets & Finance risk-off · 6–18 months
A what‑if from the future

What if overseas AI investors repatriate funds during a correction, deepening the US selloff?

Overseas investors who piled into US AI equities repatriate funds during a correction, intensifying the US selloff and transmitting it to home markets.

8%
our model probability
over 6–18 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 8% · 90% range 0–22% · 40 analogues · measured class de_dollarization 35% in 18 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — de_dollarization ≈0.2857/yr → 35% in 18 mo35%
Analyst prior · editorial share 23% of the class8%
Pooled · weight 87%9%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)9%
Published8%

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.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. Overseas investors who piled into US AI equities repatriate funds during a correction, intensifying the US selloff and transmitting it to home markets. The trigger decomposes into signed root‑shocks — AI capex ▼ · Dollar/reserve confidence ▼ · Financial conditions ▲ · Risk appetite ▼ — 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
1Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -1.2%
hist -1.39–+0.94% · other way +4.24% (n=12)
2Gold XAUon Hyperliquid 📈 chartCommodity▲ +1.2%
hist +0.22–+1.11% · other way +0.9% (n=12)
3Broadcom AVGOon Hyperliquid 📈 chartEquity▼ -1.0%
hist -1.3–+2.6% · other way +6.77% (n=12)
4Micron MUon Hyperliquid 📈 chartEquity▼ -0.9%
hist -0.83–+0.26% · other way -0.67% (n=12)
5Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -0.9%
hist -1.03–-0.08% · other way +0.24% (n=12)
6Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -0.8%
hist -0.72–+0.95% · other way +1.99% (n=12)
7MicroStrategy MSTRon Hyperliquid 📈 chartEquity▲ +0.7%
hist -2.79–+1.16% · other way +9.23% (n=12)
8S&P 500 SPXon Hyperliquid 📈 chartIndex▼ -0.6%
hist -1.05–+0.15% · other way +0.88% (n=12)
9US dollar (DXY) DXYon Hyperliquid 📈 chartFX▼ -0.6%
hist -0.47–+0.11% · other way -0.47% (n=12)
10AMD AMDon Hyperliquid 📈 chartEquity▼ -0.6%
hist -0.44–-0.01% · other way -2.37% (n=12)
11TSMC TSMon Hyperliquid 📈 chartEquity▼ -0.6%
hist -0.41–-0.08% · other way +2.14% (n=12)
12Marvell MRVLon Hyperliquid 📈 chartEquity▼ -0.6%
hist -0.5–+0.13% · other way +0.42% (n=12)
13Volatility (VIX) VIXon Hyperliquid 📈 chartVol▲ +0.5%
hist -1.64–+3.93% · other way -4.69% (n=12)
14EUR/USD EURUSDon Hyperliquid 📈 chartFX▲ +0.5%
hist -0.49–+0.64% · other way +0.75% (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 gold hedge.
Also moves (not yet on Hyperliquid): Tech sector -0.5% · 30y Treasury yield +4bp · 10y Treasury yield +4bp · High-yield credit -0.3% · Turkish lira +0.3% · Indian rupee +0.3%

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.

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 Megacap AI-capex doubt selloff 2024-07 Trump 'Taiwan should pay for defense' chip selloff 2024-07 First Republic Bank seized and sold to JPMorgan 2023-05 Regional-bank panic deepens after Signature seizure 2023-03 Netflix subscriber-loss crash 2022-04 Russia cut from SWIFT + central-bank reserves frozen 2022-02 Meta 2022-02 Kaisa Group offshore default 2021-12 Didi removed from China app stores after NYSE IPO 2021-07 Nvidia crypto-glut guidance crash 2018-11 HYG record outflows in 2014 high-yield rout 2014-10 Mt. Gox collapse 2014-02 Mt. Gox halts withdrawals 2014-02 Cyprus deposit bail-in 2013-03 Spain requests EUR100bn bank bailout 2012-06 Bankia nationalised in Spain's banking crisis 2012-05 Portugal requests EU-IMF bailout 2011-04 Greece first EU/IMF bailout 2010-05 Greece requests EU/IMF bailout 2010-04 Anglo Irish Bank nationalisation 2009-01 Fannie Mae and Freddie Mac conservatorship 2008-09 IndyMac Bank seized by the Office of Thrift Supervision 2008-07 Northern Rock bank run 2007-09 American Home Mortgage bankruptcy 2007-08 Bear Stearns freezes redemptions on subprime hedge funds 2007-06 New Century Financial bankruptcy 2007-04 Turkey lets the lira float 2001-02 Mexico $50bn international rescue package 1995-01 Hong Kong Stock Exchange four-day closure after Black Monday 1987-10 Louvre Accord 1987-02 Penn Square Bank failure 1982-07 Iranian Revolution oil shock 1978-12 Nixon Shock 1971-08 FDR gold confiscation & revaluation 1933-04 Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10 Israel strikes Iran — Operation Rising Lion 2025-06 China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
SOL SOLSHORT-14.9% · 5d -7.2%96%15 0.62✓ matches cascade
Bitcoin BTCSHORT-7.3% · 5d -2.3%73%17 0.37⚠ differs
ETH ETHSHORT-10.3% · 5d -4.4%75%16 0.37✓ matches cascade
KRW KRWSHORT-1.2% · 5d +0.0% ↺ fades65%32 0.29⚠ differs
MSTR MSTRSHORT-2.8% · 5d -2.5%63%33 0.22⚠ differs
AVGO AVGOLONG+2.8% · 5d -1.2% ↺ fades61%25 0.20⚠ differs
COIN COINSHORT-0.0% · 5d +3.6% ↺ fades62%15 0.19⚠ differs
30y yield DGS30SHORT-10bp · 5d -4bp60%38 0.18⚠ differs
SMH SMHLONG+1.3% · 5d -1.3% ↺ fades60%33 0.17⚠ differs
Gold XAULONG+0.4% · 5d +0.1%58%33 0.14✓ matches cascade
10y yield DGS10SHORT-13bp · 5d -5bp58%39 0.14⚠ differs
High-yield credit HYGSHORT-0.2% · 5d +0.1% ↺ fades59%31 0.14✓ matches cascade
ASML ASMLSHORT-1.6% · 5d -4.0%58%33 0.12✓ matches cascade
TRY TRYLONG+0.6% · 5d +1.4%58%32 0.12✓ 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.