Central Banks & Macro risk-on · 6–18 months
A what‑if from the future

What if Mexico nearshoring labor pull cushions remittance loss (good)?

Nearshoring factory hiring absorbs returning migrants and lifts formal wages, offsetting weaker remittances; MXN stabilizes and Mexican spreads tighten as domestic demand and manufacturing investment firm up.

26%
our model probability
over 6–18 months
prediction markets — the market's odds
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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 (electric blue) over time vs the market's (Polymarket, amber), 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. Loading the probability audit trail…

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What it would mean

If this plays out, it is a risk-on shock. Nearshoring factory hiring absorbs returning migrants and lifts formal wages, offsetting weaker remittances; MXN stabilizes and Mexican spreads tighten as domestic demand and manufacturing investment firm up. The trigger decomposes into signed root‑shocks — EM currencies ▲ · Credit spreads ▼ · Growth surprise ▲ · Risk appetite ▲ — which propagate through our causal graph to the markets below.

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Market odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-08-13.