🏛 Central Banks & Macro risk-on · 1–3 years
A what‑if from the future

What if Peace-dividend disinflation: lower defense needs ease price pressure?

A geopolitical de-escalation frees resources and lowers commodity-risk premia, a peace dividend that eases inflation and supports growth and risk appetite.

17%
our model probability
over 1–3 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 17% · 90% range 0–34% · 23 analogues · measured class deflation 69% in 3 yr · 3% held back for the unknown
how we built this number — every step
Measured class rate — deflation ≈0.3895/yr → 69% in 3 yr69%
Analyst prior · editorial share 20% of the class14%
Pooled · weight 79%18%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)18%
Published17%

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.

loading the timeline…

What it would mean

If this plays out, it is a risk-on shock. A geopolitical de-escalation frees resources and lowers commodity-risk premia, a peace dividend that eases inflation and supports growth and risk appetite. The trigger decomposes into signed root‑shocks — Defense spending ▼ · Geopolitical risk ▼ · Inflation expectations ▼ · Oil supply 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.

MarketClassProjected move
1Volatility (VIX) VIXon Hyperliquid 📈 chartVol▼ -5.4%
hist -3.36–-1.28% · other way -2.29% (n=10)
2Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▲ +2.4%
hist +0.83–+1.65% · other way +0.16% (n=10)
3Brent crude BRENTon Hyperliquid 📈 chartCommodity▼ -1.8%
hist -5.06–+1.72% · other way -0.68% (n=9)
4Tech sector XLK 📈 chartEquity▲ +1.8%
hist +0.4–+1.73% · other way -0.12% (n=9)
5WTI crude CLon Hyperliquid 📈 chartCommodity▼ -1.5%
hist -6.59–+3.25% · other way -3.79% (n=9)
6Solana SOLon Hyperliquid 📈 chartCrypto▲ +1.3%
hist +0.14–+1.53% · other way -1.9% (n=5)
7MicroStrategy MSTRon Hyperliquid 📈 chartEquity▲ +1.4%
hist -4.89–+9.76% · other way -5.83% (n=9)
8S&P 500 SPXon Hyperliquid 📈 chartIndex▲ +1.2%
hist -0.11–+2.04% · other way -3.81% (n=12)
9Hyperliquid (HYPE) HYPEon HyperliquidCrypto▲ +1.1%
model prior · unmeasured
10Semiconductors SMHon Hyperliquid 📈 chartEquity▲ +1.1%
hist +0.44–+0.97% · other way -1.35% (n=9)
11Ether ETHon Hyperliquid 📈 chartCrypto▲ +1.0%
hist -1.06–+1.34% · other way -3.92% (n=7)
12Energy sector XLEon Hyperliquid 📈 chartEquity▼ -1.1%
hist -2.33–+0.5% · other way -0.76% (n=9)
13Lockheed LMT 📈 chartEquity▼ -0.9%
hist -0.98–-0.1% · other way +2.19% (n=12)
14Bitcoin BTCon Hyperliquid 📈 chartCrypto▲ +0.8%
hist +0.34–+0.76% · other way -2.54% (n=8)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
For a common-man portfolio: A typical stock-heavy portfolio should benefit. Stay invested; you can lean modestly into the beneficiaries below.
Also moves (not yet on Hyperliquid): Tech sector +1.8% · Lockheed -0.9% · Northrop -0.8% · United Airlines +0.9% · ExxonMobil -0.8% · High-yield credit +0.6%

Historical precedent — what analogous events actually did

Across 23 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.

Gulf War air campaign begins 1991-01 Israel strikes Iran — Operation Rising Lion 2025-06 Operation Sindoor: India strikes Pakistan after Pahalgam attack 2025-05 China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 Henry Hub natural gas hits a 25-year low amid record US production 2024-11 Israel kills Hezbollah leader Hassan Nasrallah in Beirut strike 2024-09 Hezbollah pager and device explosions across Lebanon 2024-09 Waha hub natural gas prices crash to record negative on Permian glut 2024-08 Ukrainian drone strikes hit Russian refineries, lifting crude and gasoline 2024-03 Saudi-Russia oil price war 2020-03 India's Balakot airstrike inside Pakistan 2019-02 Pulwama attack ignites India-Pakistan crisis 2019-02 OPEC abandons output defense, opting for market share vs US shale 2014-11 Iraq invasion 2003 relief rally 2003-03 2001 Indian Parliament attack 2001-12 Kargil War begins 1999-05 OPEC and non-OPEC Vienna pact ends the 1998 price war 1999-03 Hong Kong HKMA market intervention against speculators 1998-08 Third Taiwan Strait Crisis 1996-03 Black Wednesday / ERM crisis 1992-09 Soviet August coup attempt against Gorbachev 1991-08 1986 oil price collapse 1986-02 Cuban Missile Crisis 1962-10
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
COIN COINLONG+15.1% · 5d +5.5%88%8 0.62✓ matches cascade
AUD AUDSHORT-1.7% · 5d -0.7%83%12 0.52⚠ differs
EURUSD EURUSDSHORT-1.0% · 5d -0.3%83%12 0.49⚠ differs
AVGO AVGOLONG+3.5% · 5d -0.5% ↺ fades75%12 0.46✓ matches cascade
KRW KRWSHORT-1.1% · 5d -0.9%75%12 0.44⚠ differs
High-yield credit HYGSHORT-1.2% · 5d -0.3%75%12 0.40⚠ differs
TRY TRYSHORT-1.4% · 5d +0.9% ↺ fades75%12 0.32⚠ differs
ETH ETHSHORT-1.6% · 5d -3.0%73%11 0.31⚠ differs
US dollar DXYLONG+0.1% · 5d +0.4%67%22 0.30⚠ differs
UAL UALLONG+5.8% · 5d -0.2% ↺ fades67%12 0.29✓ matches cascade
DAL DALLONG+3.4% · 5d -0.1% ↺ fades67%12 0.28✓ matches cascade
INR INRSHORT-0.2% · 5d -0.2%67%12 0.25⚠ differs
NOC NOCSHORT-0.5% · 5d -0.1%62%22 0.21✓ matches cascade
SPX SPXLONG+1.3% · 5d +0.6%60%22 0.19✓ 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.