Possible scenario
Sharper Military Escalation
20% Chance
Beijing chooses a more forceful response to deter further sovereignty language from Lai. This would not necessarily indicate imminent conflict, but it would raise short-term tail risk for Taiwan-linked assets and global semiconductor supply chains.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- US dollar Up
Secondary impacts
- Technology -2.3%
- Industrials -0.6%
Portfolio impact
S&P 500-1.5%
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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