Rietz Comments on Futures Markets

During the past five presidential elections, the Iowa Electronic Markets has been closer to predicting the ultimate winner, 74 percent of the time, than nearly 1,000 independent polls. "These exchanges were designed to create accuracy, because we're asking people to predict not how they feel but what will happen, which means people have to take things into account other than their personal opinion," said THOMAS RIETZ, associate professor of finance at the University of Iowa. Investment News originates in New York.

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