Possible scenario
Retaliation escalates tensions
20% Chance
Venezuelan loyalist authorities or Russia take concrete retaliatory steps after the U.S. refuses to release Maduro. The escalation remains below a direct military crisis, but markets price a higher risk of disrupted Venezuelan oil flows and tit-for-tat detentions.
Initial impacts
- Market volatility Up
- Riskier companies' borrowing costs Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
Secondary impacts
- Energy +1.1%
- Industrials
Portfolio impact
S&P 500-1.0%
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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