Possible scenario
Valuation Reset Spreads
25% Chance
The breadth deterioration becomes a catalyst for a broader de-risking move. Investors question whether the narrow group of market leaders can keep offsetting weakness in 134 heavily damaged constituents.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Copper Down
Secondary impacts
- Consumer Cyclicals -1.3%
- Finance -1.3%
Portfolio impact
S&P 500-1.3%
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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