⚔ Geopolitics risk-on · 1–3 years
A what‑if from the future

What if US stockpiles and price floors de-risk rare earths?

A US strategic rare-earth reserve plus magnet price floors guarantee Western offtake, neutralizing China's export weapon and supporting allied EV and defense supply chains.

32%
our model probability
over 1–3 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 32% · 90% range 19–46% · 34 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 36% of the class35%
Pooled · weight 85%33%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)33%
Published32%

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 US strategic rare-earth reserve plus magnet price floors guarantee Western offtake, neutralizing China's export weapon and supporting allied EV and defense supply chains. The trigger decomposes into signed root‑shocks — Defense spending ▲ · Industrial demand ▲ · Risk appetite ▲ · Trade tension ▼ — 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
1Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▲ +1.2%
hist +0.42–+0.73% · other way +0.9% (n=12)
2Semiconductors SMHon Hyperliquid 📈 chartEquity▲ +0.9%
hist +0.19–+0.89% · other way -0.46% (n=12)
3Tech sector XLK 📈 chartEquity▲ +0.8%
hist +0.21–+0.63% · other way +0.8% (n=12)
4Nvidia NVDAon Hyperliquid 📈 chartEquity▲ +0.8%
hist -0.1–+1.28% · other way +1.29% (n=12)
5TSMC TSMon Hyperliquid 📈 chartEquity▲ +0.7%
hist +0.03–+0.57% · other way +0.52% (n=12)
6Solana SOLon Hyperliquid 📈 chartCrypto▲ +0.6%
hist -0.22–+1.21% · other way +1.0% (n=6)
7AMD AMDon Hyperliquid 📈 chartEquity▲ +0.6%
hist -0.14–+1.1% · other way +0.89% (n=12)
8Broadcom AVGOon Hyperliquid 📈 chartEquity▲ +0.6%
hist -0.78–+3.33% · other way +1.54% (n=11)
9Micron MUon Hyperliquid 📈 chartEquity▲ +0.6%
hist -0.18–+1.21% · other way +1.85% (n=12)
10Marvell MRVLon Hyperliquid 📈 chartEquity▲ +0.6%
hist +0.09–+0.33% · other way -0.63% (n=12)
11Alibaba BABAon Hyperliquid 📈 chartEquity▲ +0.6%
hist -2.14–+0.58% · other way +0.44% (n=8)
12MicroStrategy MSTRon Hyperliquid 📈 chartEquity▲ +0.6%
hist -4.02–+9.27% · other way -4.79% (n=12)
13Hyperliquid (HYPE) HYPEon HyperliquidCrypto▲ +0.5%
model prior · unmeasured
14ASML ASMLon Hyperliquid 📈 chartEquity▲ +0.6%
hist -1.75–+1.14% · other way -3.38% (n=12)

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 +0.8% · Lockheed +0.5% · Freeport (copper) +0.5% · Northrop +0.5% · Chinese yuan +0.4% · Aussie dollar +0.2%

Historical precedent — what analogous events actually did

Across 34 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.

Soviet August coup attempt against Gorbachev 1991-08 Platinum hits an 11-year high on Chinese jewelry demand and deficit 2025-06 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 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 Palladium jumps after US pushes G7 sanctions on Russian metal 2024-10 Israel kills Hezbollah leader Hassan Nasrallah in Beirut strike 2024-09 Hezbollah pager and device explosions across Lebanon 2024-09 Ukrainian drone strikes hit Russian refineries, lifting crude and gasoline 2024-03 RTX takes $3B charge on Pratt & Whitney GTF engine flaw 2023-09 Niger coup d'etat 2023-07 Tin hits nominal record on LME above $48,000/t 2022-03 Burkina Faso coup d'etat 2022-01 Mali coup d'etat 2020-08 India's Balakot airstrike inside Pakistan 2019-02 Pulwama attack ignites India-Pakistan crisis 2019-02 North Korea sixth nuclear test 2017-09 North Korea 'fire and fury' nuclear scare 2017-08 OPEC abandons output defense, opting for market share vs US shale 2014-11 Egyptian revolution / Mubarak uprising 2011-01 Silver hits 30-year high as JPMorgan and HSBC face manipulation suits 2010-10 Iraq invasion 2003 relief rally 2003-03 2001 Indian Parliament attack 2001-12 Kargil War begins 1999-05 Hong Kong HKMA market intervention against speculators 1998-08 Third Taiwan Strait Crisis 1996-03 Black Wednesday / ERM crisis 1992-09 Operation Desert Storm begins 1991-01 Gold peaks at $850 1980-01 Soviet invasion of Afghanistan 1979-12 Iran hostage crisis / US freezes Iranian assets 1979-11 Volcker Saturday Night Special 1979-10 Cuban Missile Crisis 1962-10
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
COIN COINLONG+14.8% · 5d +3.3%85%13 0.58✓ matches cascade
10y yield DGS10LONG+22bp · 5d +11bp72%33 0.42·
NOC NOCSHORT-1.8% · 5d -0.8%73%29 0.39⚠ differs
BABA BABASHORT-2.0% · 5d -2.5%74%19 0.38⚠ differs
CNY CNYSHORT-0.3% · 5d -0.1%70%23 0.36⚠ differs
US dollar DXYLONG+0.1% · 5d +0.1%69%33 0.31⚠ differs
High-yield credit HYGSHORT-0.8% · 5d -0.3%71%21 0.31·
AUD AUDSHORT-1.1% · 5d -0.5%67%21 0.25⚠ differs
AVGO AVGOLONG+2.8% · 5d -1.1% ↺ fades62%21 0.22✓ matches cascade
Bitcoin BTCLONG+1.5% · 5d -2.5% ↺ fades63%19 0.20✓ matches cascade
EURUSD EURUSDSHORT-0.6% · 5d -0.1%62%21 0.17⚠ differs
MRVL MRVLSHORT-0.1% · 5d -2.9%61%23 0.15⚠ differs
Volatility VIXLONG+4.7% · 5d -0.9% ↺ fades59%29 0.15⚠ differs
QCOM QCOMSHORT-1.7% · 5d -2.0%59%27 0.15⚠ differs

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.