Possible scenario
Deterrence Holds
45% Chance
The most likely path is that the U.S. Marine deployment functions as a deterrent signal rather than a trigger for combat. Beijing denounces the move and increases surveillance, but both Washington and Beijing avoid steps that would force a direct military confrontation.
Initial impacts
- Market volatility Up
- 10-year Treasury yield Down
- Riskier companies' borrowing costs Up
- US dollar Up
Secondary impacts
- Technology -0.5%
- Industrials +0.5%
Portfolio impact
S&P 500-0.3%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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