📈 Markets & Finance mixed · 1–3 years
A what‑if from the future

What if Software-defined entrants undercut legacy primes on cost and speed?

Anduril- and SpaceX-style new entrants win share with cheaper, faster systems, compressing legacy-prime growth expectations and pressuring incumbent multiples.

27%
our model probability
over 1–3 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 27% · 90% range 14–39% · 38 analogues · measured class defense 97% in 3 yr · 3% held back for the unknown
how we built this number — every step
Measured class rate — defense ≈1.2155/yr → 97% in 3 yr97%
Analyst prior · editorial share 29% of the class28%
Pooled · weight 86%28%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)28%
Published27%

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 mixed shock. Anduril- and SpaceX-style new entrants win share with cheaper, faster systems, compressing legacy-prime growth expectations and pressuring incumbent multiples. The trigger decomposes into signed root‑shocks — Defense spending ▲ · 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▼ -0.2%
hist -1.05–+0.84% · other way +0.89% (n=12)
2MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -0.2%
hist -2.81–+5.82% · other way +26.92% (n=12)
3Lockheed LMT 📈 chartEquity▲ +0.2%
hist -1.05–+2.32% · other way -3.24% (n=12)
4Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -0.2%
hist -0.18–+0.13% · other way -0.37% (n=12)
5Northrop NOC 📈 chartEquity▲ +0.2%
hist -0.84–+2.0% · other way -1.37% (n=12)
6Hyperliquid (HYPE) HYPEon HyperliquidCrypto▼ -0.2%
model prior · unmeasured

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Long
For a common-man portfolio: Mixed for a typical portfolio — the move is more about rotation than direction. Favour the winners over the losers below rather than net exposure.
Also moves (not yet on Hyperliquid): Lockheed +0.2% · Northrop +0.2%

Historical precedent — what analogous events actually did

Across 38 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.

Israel strikes Iran — Operation Rising Lion 2025-06 China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 OPEC abandons output defense, opting for market share vs US shale 2014-11 Operation Sindoor: India strikes Pakistan after Pahalgam attack 2025-05 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 October 2024 Iranian ballistic-missile attack on Israel 2024-10 Hezbollah pager and device explosions across Lebanon 2024-09 Trump 'Taiwan should pay for defense' chip selloff 2024-07 Wagner Group mutiny against the Kremlin 2023-06 China fires ballistic missiles into Japan's EEZ during Taiwan drills 2022-08 Saudi-Russia oil price war 2020-03 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 India's Balakot airstrike inside Pakistan 2019-02 Pulwama attack ignites India-Pakistan crisis 2019-02 Bitcoin Cash hash war capitulation 2018-11 Turkish lira crisis 2018-08 North Korea sixth nuclear test 2017-09 North Korea 'fire and fury' nuclear scare 2017-08 Egyptian revolution / Mubarak uprising 2011-01 2001 Indian Parliament attack 2001-12 US airline stocks plunge ~40% on first trading day after 9/11 2001-09 Kargil War begins 1999-05 Hong Kong HKMA market intervention against speculators 1998-08 Hong Kong defends the peg with sky-high HIBOR 1997-10 Thai baht float / start of the Asian financial crisis 1997-07 Third Taiwan Strait Crisis 1996-03 Black Wednesday / ERM crisis 1992-09 Soviet August coup attempt against Gorbachev 1991-08 Iraqi Scud missile attacks on Israel and Saudi Arabia 1991-01 Tiananmen Square crackdown 1989-06 1986 oil price collapse 1986-02 Reagan assassination attempt 1981-03 Gold peaks at $850 1980-01 Iran hostage crisis / US freezes Iranian assets 1979-11 JFK assassination 1963-11 Cuban Missile Crisis 1962-10 Korean War begins 1950-06 Smoot-Hawley clears the US House 1929-05
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
Volatility VIXLONG+6.2% · 5d +3.0%66%29 0.27·
High-yield credit HYGSHORT-0.6% · 5d -0.2%66%19 0.25·
MSTR MSTRLONG+5.8% · 5d -1.1% ↺ fades53%23 0.05⚠ differs
NOC NOCLONG+1.9% · 5d +1.2%52%31 0.04✓ matches cascade
10y yield DGS10LONG+2bp · 5d +5bp52%34 0.04·
Bitcoin BTCSHORT-4.2% · 5d -3.0%51%18 0.02·
SOL SOLLONG+1.1% · 5d -5.5% ↺ fades45%9 0.00⚠ differs
LMT LMTLONG+2.2% · 5d +0.1%49%34 0.00✓ matches cascade
NDX NDXLONG+0.2% · 5d -0.9% ↺ fades45%31 0.00⚠ differs
Gold XAULONG+0.5% · 5d -0.9% ↺ fades47%21 0.00·
US dollar DXYSHORT-0.1% · 5d +0.1% ↺ fades46%34 0.00·

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.