Rietz Explains IEM, Updates Prices

Appearing on MSNBC's "Market Wrap," University of Iowa associate professor of finance TOM RIETZ explained the Iowa Electronic Markets, noting that the IEM has about 3,200 traders and about $300,000 in investments. Since 1988, the IEM has had an average prediction error of 1.37 percent in predicting the outcomes of presidential elections. The IEM is showing a 60 percent probability that George Bush will win the election, compared to 40 percent for John Kerry.