Possible scenario
Regime Fractures
24% Chance
Cuba’s economic breakdown and protests could create real elite fractures, especially if military and security leaders conclude that Díaz-Canel can no longer preserve order. A managed transition remains more likely than an abrupt democratic revolution, given the Communist Party’s control over the armed forces and ministries.
Initial impacts
- Riskier companies' borrowing costs Down
- Market volatility Down
- 10-year Treasury yield Up
- US dollar Down
Secondary impacts
- Consumer Services +0.9%
- Consumer Cyclicals +0.6%
Portfolio impact
S&P 500+0.5%
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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