🧠 Technology & AI risk-off · 1–3 years
A what‑if from the future

What if Reshoring cost shock as US wages make onshore plants uneconomic?

High domestic labor and construction costs leave reshored factories uncompetitive without permanent subsidy, prompting project cancellations and write-downs; the disappointment de-rates the reshoring-capex supply chain.

23%
our model probability
over 1–3 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 23% · 90% range 10–35% · 24 analogues · measured class growth 100% in 3 yr · 3% held back for the unknown
how we built this number — every step
Measured class rate — growth ≈1.8868/yr → 100% in 3 yr100%
Analyst prior · editorial share 22% of the class22%
Pooled · weight 80%23%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)23%
Published23%

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-off shock. High domestic labor and construction costs leave reshored factories uncompetitive without permanent subsidy, prompting project cancellations and write-downs; the disappointment de-rates the reshoring-capex supply chain. The trigger decomposes into signed root‑shocks — Industrial demand ▼ · Inflation surprise ▲ · 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
1Solana SOLon Hyperliquid 📈 chartCrypto▼ -0.5%
hist -4.5–+4.32% · other way -6.23% (n=9)
2Freeport (copper) FCX 📈 chartEquity▼ -0.4%
hist -4.68–+2.2% · other way +7.57% (n=12)
3Hyperliquid (HYPE) HYPEon HyperliquidCrypto▼ -0.4%
model prior · unmeasured
4MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -0.4%
hist -2.2–+1.16% · other way +21.27% (n=12)
5Ether ETHon Hyperliquid 📈 chartCrypto▼ -0.4%
hist -3.44–+2.3% · other way +2.96% (n=9)
6Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -0.3%
hist -0.4–+0.36% · other way +1.25% (n=12)
7Volatility (VIX) VIXon Hyperliquid 📈 chartVol▲ +0.3%
hist -2.99–+8.97% · other way -9.52% (n=12)
8Bitcoin BTCon Hyperliquid 📈 chartCrypto▼ -0.2%
hist -0.55–+0.15% · other way +9.98% (n=9)
9Tech sector XLK 📈 chartEquity▼ -0.2%
hist -0.58–+0.58% · other way +1.94% (n=12)
10Copper XCUon Hyperliquid 📈 chartCommodity▼ -0.2%
hist -3.57–+1.41% · other way -0.42% (n=12)
11S&P 500 SPXon Hyperliquid 📈 chartIndex▼ -0.1%
hist -1.54–+0.61% · other way +2.72% (n=12)
12Coinbase COINon Hyperliquid 📈 chartEquity▼ -0.2%
hist -1.09–+0.85% · other way +22.18% (n=8)
13Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -0.2%
hist -0.52–+0.59% · other way +1.17% (n=12)
1430y Treasury yield DGS30 📈 chartRate▲ +1bp
hist -3.0–+7.43% · other way +4.9% (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 cash hedge.
Also moves (not yet on Hyperliquid): Freeport (copper) -0.4% · Tech sector -0.2% · 30y Treasury yield +1bp · 10y Treasury yield +1bp

Historical precedent — what analogous events actually did

Across 24 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.

Silver Thursday 1980-03 Gold peaks at $850 1980-01 1979 Iranian Revolution oil shock 1979-01 Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 Gold tops $2,500 for the first time on Fed rate-cut bets 2024-08 August 2022 hot CPI 2022-09 Powell's hawkish 'pain' speech at Jackson Hole 2022-08 Turkish lira record low on rate cuts 2021-11 Gold closes above $2,000/oz for the first time 2020-08 February 2018 hot wage print triggers rate scare 2018-02 North Korea sixth nuclear test 2017-09 North Korea 'fire and fury' nuclear scare 2017-08 Gold futures velocity-logic flash crash 2014-01 Gold all-time peak of $1,921/oz 2011-09 Egyptian revolution / Mubarak uprising 2011-01 Crude oil all-time high 2008-07 Soviet August coup attempt against Gorbachev 1991-08 Chernobyl disaster 1986-04 Iran hostage crisis / US freezes Iranian assets 1979-11 Volcker Saturday Night Special 1979-10 Three Mile Island partial meltdown 1979-03 Iranian Revolution oil shock 1978-12 Nixon Shock 1971-08
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
Volatility VIXLONG+8.1% · 5d +10.6%73%15 0.40✓ matches cascade
XCU XCUSHORT-3.3% · 5d -1.1%71%14 0.34✓ matches cascade
Gold XAUSHORT-1.6% · 5d -0.5%64%14 0.27·
FCX FCXSHORT-4.4% · 5d -1.7%64%14 0.22✓ matches cascade
NDX NDXLONG+0.5% · 5d -1.0% ↺ fades62%16 0.18⚠ differs
ETH ETHSHORT-3.3% · 5d -4.0%62%8 0.16✓ matches cascade
Bitcoin BTCSHORT-0.4% · 5d -2.9%60%10 0.16✓ matches cascade
XLK XLKLONG+0.8% · 5d -0.9% ↺ fades57%14 0.11⚠ differs
SMH SMHLONG+0.7% · 5d -0.5% ↺ fades57%14 0.11⚠ differs
SOL SOLLONG+5.1% · 5d -4.9% ↺ fades57%7 0.10⚠ differs
SPX SPXSHORT-1.4% · 5d -0.6%53%24 0.05✓ matches cascade
MSTR MSTRSHORT-2.0% · 5d -3.1%50%14 0.00✓ matches cascade
COIN COINLONG+1.0% · 5d -0.0% ↺ fades50%6 0.00⚠ differs
30y yield DGS30LONG+7bp · 5d +3bp49%23 0.00✓ 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.