It Ain’t Over till the Electoral Reform Society Sings


Guido has basically got his betting book flat on the Labour leadership, after backing David originally, flipping around onto Ed last Friday and adding to his position substantially during the week. Guido took the book to basically neutral last night, after selling Ed at ridiculously high prices going into the result.

Why? Because it is just too close to call with confidence.

Unless the Electoral Reform Society has leaked – something Guido doubts – the Thursday night flip happened because punters put money on Ed, it snowballed taking him beyond evens and making him favourite. There was no new poll or information on Thursday, the price moved simply and only because there were more buyers than sellers.

At the time of writing the specialist political bookies Smarkets* have Ed with an 80% probability of winning, it should be nearer 50/50 based on the polling and closeness of the count. Guido is tempted, on a valuation basis, to sell Ed at that price…

*As far as Guido can see they are the only bookies still making prices.



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