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And finally, here's what Joe’s interested in this morning
On Polymarket, Kamala Harris is now favored to win the Presidency after last night's Presidential debate. It's a notable change from pre-debate, when bettors were giving Trump around a 52% chance to win.
One thing I've been saying for awhile is that prediction markets are good for news consumption. When something like a debate happens, there's all kinds of things people take in. People watch the debate itself. People are likely following what their social media feeds say. People read the news. People listen to biased pundits, and so forth. And liquid prediction markets are yet another to add to that mix. It's one thing to hear someone on TV say "Kamala Harris won the debate", but it's hard to know what that means exactly. Seeing a market with millions of dollars on the line swing a few points (modestly, but clearly) says a little bit more.
Another nice thing about these markets is you can clearly see the link between what's going on with the Presidential race and certain politics-sensitive asset classes. Here's Bitcoin slipping right at the same time as Trump's odds.
One objection you could make is that it's still all "horse race" stuff, that just like following polls, none of it matters until election day, and right now the betting markets could be wrong. And that's true. But if the Presidential election race is spilling into other markets, then to some extent swings in perception are inevitably going to matter. You know, all markets can be "wrong". Traders can bid up a stock on expectation of good earnings, and then earnings disappoint. This happens all the time. But of course, in the meantime, on the way to be wrong, money is still made and lost while the stock goes in various directions.
So if you have any sort of short- or medium-term interest in markets, and if you want to benchmark your own views against conventional wisdom, or just see where conventional wisdom stands right now with respect to the Presidential election, then these betting markets are useful tools.