What if North Korea backchannel freeze quietly removes the Korea discount?
A discreet US-North Korea understanding to pause testing, even without a formal deal, steadily lifts the chronic 'Korea discount' on Seoul assets; KOSPI and KRW outperform, defense names lag.
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 1–3 years 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-on shock. A discreet US-North Korea understanding to pause testing, even without a formal deal, steadily lifts the chronic 'Korea discount' on Seoul assets; KOSPI and KRW outperform, defense names lag. The trigger decomposes into signed root‑shocks — EM currencies ▲ · Defense spending ▼ · Geopolitical risk ▼ · 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.
| Market | Class | Projected move | |
|---|---|---|---|
| 1 | Volatility (VIX) VIXon Hyperliquid 📈 chart | Vol | ▼ -6.0% hist -3.92–+2.48% · other way +13.54% (n=12) |
| 2 | Nasdaq 100 NDXon Hyperliquid 📈 chart | Index | ▲ +2.5% hist +0.85–+1.57% · other way +0.3% (n=12) |
| 3 | Tech sector XLK 📈 chart | Equity | ▲ +1.7% hist +0.6–+1.07% · other way -1.51% (n=10) |
| 4 | S&P 500 SPXon Hyperliquid 📈 chart | Index | ▲ +1.4% hist +0.13–+1.52% · other way -1.16% (n=12) |
| 5 | MicroStrategy MSTRon Hyperliquid 📈 chart | Equity | ▲ +1.4% hist -4.07–+9.89% · other way +1.52% (n=10) |
| 6 | Solana SOLon Hyperliquid 📈 chart | Crypto | ▲ +1.2% hist -0.87–+1.09% · other way -7.02% (n=8) |
| 7 | Semiconductors SMHon Hyperliquid 📈 chart | Equity | ▲ +1.2% hist +0.33–+1.03% · other way -3.17% (n=10) |
| 8 | Hyperliquid (HYPE) HYPEon Hyperliquid | Crypto | ▲ +1.0% model prior · unmeasured |
| 9 | Lockheed LMT 📈 chart | Equity | ▼ -0.9% hist -1.4–+0.03% · other way +1.07% (n=12) |
| 10 | Ether ETHon Hyperliquid 📈 chart | Crypto | ▲ +0.9% hist -0.58–+2.35% · other way -8.6% (n=10) |
| 11 | Northrop NOC 📈 chart | Equity | ▼ -0.8% hist -0.54–-0.28% · other way +6.11% (n=12) |
| 12 | Bitcoin BTCon Hyperliquid 📈 chart | Crypto | ▲ +0.8% hist -0.28–+1.68% · other way -1.56% (n=10) |
| 13 | Gold XAUon Hyperliquid 📈 chart | Commodity | ▼ -0.7% hist -0.6–+0.08% · other way -0.05% (n=10) |
| 14 | RTX RTXon Hyperliquid 📈 chart | Equity | ▼ -0.7% hist -1.01–+0.01% · other way +1.07% (n=12) |
Probable recommendation
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.
| Asset | History says | Abnormal (20d · 5d) | Hit | n | Confidence | vs cascade |
|---|---|---|---|---|---|---|
| COIN COIN | LONG | +11.4% · 5d +3.5% | 76% | 28 | 0.47 | ✓ matches cascade |
| USDJPY USDJPY | LONG | +0.7% · 5d +0.6% | 75% | 35 | 0.46 | ✓ matches cascade |
| CNY CNY | SHORT | -0.4% · 5d -0.2% | 77% | 33 | 0.45 | ⚠ differs |
| JPM JPM | LONG | +2.2% · 5d -0.2% ↺ fades | 68% | 39 | 0.33 | ✓ matches cascade |
| INTC INTC | SHORT | -4.6% · 5d -1.9% | 66% | 39 | 0.30 | ⚠ differs |
| AVGO AVGO | LONG | +3.4% · 5d -0.7% ↺ fades | 65% | 31 | 0.29 | ✓ matches cascade |
| 10y yield DGS10 | LONG | +8bp · 5d +8bp | 64% | 39 | 0.24 | · |
| TRY TRY | SHORT | -0.8% · 5d +0.8% ↺ fades | 68% | 31 | 0.23 | ⚠ differs |
| AUD AUD | SHORT | -0.8% · 5d -0.6% | 65% | 31 | 0.23 | ⚠ differs |
| LMT LMT | SHORT | -0.9% · 5d -1.0% | 62% | 39 | 0.18 | ✓ matches cascade |
| High-yield credit HYG | SHORT | -0.4% · 5d -0.1% | 62% | 31 | 0.18 | ⚠ differs |
| US dollar DXY | LONG | +0.1% · 5d +0.3% | 61% | 39 | 0.18 | ⚠ differs |
| Volatility VIX | LONG | +4.7% · 5d -1.3% ↺ fades | 61% | 39 | 0.17 | ⚠ differs |
| SPX SPX | LONG | +0.8% · 5d +0.7% | 59% | 39 | 0.15 | ✓ matches cascade |