Archived research. Equity forecasting is part of the Runchey Research archive (methodology era 1) and is no longer actively updated. Everything remains published at its original URL. Browse the archive

Back to Forecasting
SECTORDraft

Will the DoD FY2027 budget request exceed $1.0 trillion in total national defense spending?

Resolves May 15, 2026
IG: 0.60

Why This Question Matters

The defense budget is the single most important exogenous variable identified across four of six sector lenses. All 8 constituents have calibrated investment to maximum spending scenario. A budget request above $1.0T confirms the demand trajectory that justifies current capital deployment. A request at or below $1.0T would widen the investment/demand gap and shift regime transition probability from 30-40% to 50-60%, changing the sector assessment from late-expansion to early-transition.

SECTOR_REGIMECAPEX_CYCLECOMPETITIVE_DYNAMICS

Resolution Criteria

Resolves YES if the President's FY2027 budget request, as submitted to Congress, contains total national defense spending (budget function 050) exceeding $1.0 trillion. Resolves NO if total national defense spending in the request is $1.0 trillion or below. Uses the official OMB budget submission, not Congressional markups.

Resolution Source

Office of Management and Budget FY2027 budget submission; DoD Comptroller budget overview

Source Trigger

DoD FY2027 budget request ($1.5T target) is the single most important exogenous variable — determines whether overinvestment phase extends or triggers regime transition. Below $1.2T shifts regime transition probability to 50-60%.

sector-regimeSECTOR_REGIMEHIGH
View SECTOR Analysis

Full multi-lens equity analysis