Intrade Predictions

For those not familiar, there is a website (actually a few of them) that is a cross between the stock market and a gambling website.  It’s called Intrade.  Basically, the way it works is they are an electronic exchange for buying and selling shares of different events.  One event that is particularly popular is the Presidential Election.  The site shows how ‘trading’ is going at the Electoral College level and the popular vote.  Obama is ahead 364/174 in Electoral Votes and a 93% chance of winning.

I really like this site as an indicator how the election is going.  It’s been a place I’ve turned all election season for a calibration of the races.  What I really like is the agreement between ‘investors’ to find the equilibrium in the chances of a candidate winning a state.  I believe investors are probably the most accurate predictors of the future outcome and the significant number of investors should do a good job of focusing to a reasonable percentage.  In fact, some of the aggregate pollsters use the results of Intrade to help determine the outcome of their polls.

The stock market sensitivity to events is usually extremely fine and relatively accurate as to where the economy or world events are going.  The Electronic Market extension (as is Intrade is considered) is a great way for cutting through Parisian rhetoric and getting to a real idea as to where the election stands.  I don’t have the stats from four years ago, but I believe the site was relatively accurate.  As the day and night drag on, I would suggest popping over to Intrade to see how they are projecting the different states.

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