Possible scenario
Managed Deterrence
45% Chance
North Korea's declaration is treated by Washington, Seoul and Tokyo as a hardened negotiating position rather than an immediate trigger for conflict. The most likely outcome is tighter allied deterrence messaging, selective sanctions work and continued surveillance without a major kinetic incident.
Initial impacts
- Market volatility Up
- 10-year Treasury yield Down
- Riskier companies' borrowing costs Up
- US dollar Up
Secondary impacts
- Industrials +0.3%
- Technology -0.3%
Portfolio impact
S&P 500-0.2%
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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