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Tim H.'s avatar

What is the definition of the term "Probability shift"?

Also what is "S7"? (if it is a "scenario" I do not see it listed)

K. Iyer's avatar

Hi Tim -

Part 1 defines my 4 core scenarios (Syria, Libya, Hybrid, Escalation) with probabilities.

Part 2's winners/losers matrix expanded to 7 scenarios (S1-S7) -- where

S1: Quarantine/Blockade (a sub-variant)

S6: OPEC+ Loosens

S7: OPEC+ Tightens

"Probability shift" is meant to describe how the original 4-scenario probabilities update when a trigger fires. For example, "Syria: 20% ---> 40%" means if Machado gets sworn in, I'd revise my Syria Model probability upward. Hope this helps!

Tim H.'s avatar

Yours is certainly a sane action plan but its strength is its explicit layout, subjective as the input-assessments may be.

One bet that will survives under just about all scenarios is the midstream. If you do any follow ups, include your opinion on that.