Wisdom of crowds

[Iron]

An interesting article which puts forward a theory on why prediction markets are so accurate:

http://karmatics.com/docs/evolution-and ... rowds.html

Jeff

[Euler]

When I saw the title I thought you were talking about riots again?

[Iron]

No - The title would have been 'Mindless stupidity of crowds' if I were talking about them!

Jeff

When I saw the title I thought you were talking about riots again?

[Euler]

Either could apply in the current markets!

[Iron]

Quite!

According to the Telegraph: 'FTSE 100 has closed up 3.1pc, DAX is 3.3pc better off and the CAC has ended 2.9pc up. Even Italy, which took a big hit yesterday, closed up 4.1pc. Crisis? What crisis?'

I don't know what's caused the drift, but my money is on a hint from the Fed that QE3 is on its way!

Jeff

Either could apply in the current markets!