What if GLP-1 obesity drugs reshape food, drink and healthcare?
GLP-1 expansion is a relative-value rotation, not an index move (cascade is empty by design): long pharma/Novo-Lilly and healthcare volumes, short the calorie-and-comorbidity complex - packaged food, soda, alcohol, dialysis, bariatric. Rhymes with the Aug-2023 'Wegovy effect' selloff that knocked food/bev and medtech on the announcement. Forward angle: as oral and cheaper generics broaden access, the consumer-staples derating deepens while restaurants/apparel see mixed volume effects - it's a long-short within consumer, not a beta call.
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 mixed shock. A blockbuster obesity/GLP-1 expansion reshapes food, beverage and healthcare sectors. The trigger decomposes into signed root‑shocks — Consumer spending ▼ · Growth surprise ▲ — 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 |
|---|
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 |
|---|---|---|---|---|---|---|
| 10y yield DGS10 | LONG | +12bp · 5d +3bp | 70% | 40 | 0.32 | · |
| High-yield credit HYG | SHORT | -0.5% · 5d -0.1% | 66% | 40 | 0.23 | · |
| Gold XAU | SHORT | -0.6% · 5d -0.7% | 59% | 40 | 0.15 | · |
| US dollar DXY | SHORT | -0.1% · 5d -0.0% | 59% | 40 | 0.14 | · |
| Bitcoin BTC | LONG | +3.8% · 5d -2.4% ↺ fades | 52% | 40 | 0.04 | · |
| Volatility VIX | SHORT | -0.4% · 5d -4.6% | 50% | 40 | 0.00 | · |
Why this probability
GLP-1 expansion already reshaping food/health sectors; trend firmly in motion, high near-term odds. A base‑rate‑anchored prior, continuously scored against what actually happens — not a forecast.