The Iowans have spoken, and the GOP presidential caucuses confounded the prediction markets by giving Ted Cruz the edge over Donald Trump.
Trump had been favored by the markets – but when tonight’s results became clear, his stock tumbled to near zero while Cruz’s spiked to the top of the chart. What’s really interesting is what happened to the prognostication for the GOP nomination. The current favorite, according to Predictwise’s aggregation of prediction markets, is neither Trump nor Cruz: It’s Marco Rubio, who put in a strong third-place showing.
On the Democratic side, Hillary Clinton was running neck-and-neck with Bernie Sanders in the caucus tally, but the market forecasters were putting their money on Clinton to prevail. Literally.