Oct

15

All these possibilities are quite analogous to those who like to fight the drift in the market. There are so many things that could go wrong. There are so many factors that people don't consider that could cause a big drop. Just in the last 4 days, there was the w.f. wagon, the Chinese trade, the alcoa signal, the Hillary speech. Every day there's some unaccounted for worry. My goodness, that's what the market takes into account, why it is where it is, where people put their money on it, and equilibrate taking into account all the positive and negative factors. That's how it is with the predictive markets. They take account of the turnouts, the prevalence of preference, the changes in votes as the election nears, the states, the coming news, the efforts to bring out the vote. If it gets too far out of line, money comes in to move it to the right direction. It's just like the market, and the reason that the best estimate of the market for the next period is always the drift.


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