Election Market Crash
Via e-mail from Barry Ritholtz:
Tradesports, which has had the incumbent up for the entire campaign,
has now flipped:
PRESIDENT.KERRY2004 trading at 67.0 by 67.9
PRESIDENT.GWBUSH2004 trading at 32.2 by 33.0
Can we please promise to never mention these idiotic exchanges again?
My guess is “investors” are panicking in response to the early exit polls. My problem with these things has always been that, unlike the traditional stock market, investors in these election markets have no more useful information than is available to the average consumer.