Political Markets Show Futures' Predictive Role

In May, futures contracts based on home prices began trading on the Chicago Mercantile Exchange. That market forecasts a downturn, and economic experts are taking this outlook seriously given the proven predictive capability of futures markets. Washington types have closely followed the political futures market run by the UNIVERSITY OF IOWA ever since it called the 1992 presidential tally more accurately than major polls, the story reports.

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