The 2016 US Presidential Election has a chance to be one of the more interesting cycles of my lifetime from various unique fronts, but in particular the betting markets, who are dealing with significant amounts of uncertainty, largely because traditional polling models do not bring the trust they once did.
This uncertainty has led to some wild fluctuations, and the first test out of the gate, the Iowa Caucus, is quite an example. Less than two weeks ago Ted Cruz was trading as high as 1/3 off of some major media stories, now he can be found for as high as 7/4. Can you imagine that kind of swing ever taking place in the Sports Betting marketplace? This is going to leave some opportunities out there, and I believe there is one we can put into the pocket for small now –
Ted Cruz at 6/4 or better to win Iowa. In what may turn out to be a coin flip, I believe this is more than fair value.
Why have the odds shifted in Donald Trump’s favor in the state? Largely because of his showing in the national polls, and also when those national pollsters have isolated Iowa, which has made headlines. But what happens when the polling comes from inside the state? Try this (
http://www.news.iastate.edu/news/2016/01/26/caucuspoll). Or if the polling is from a source that does not need to generate ratings, like here (
http://www.quinnipiac.edu/news-and-...rsity-poll/iowa/release-detail?ReleaseID=2318). But those polls won’t make headlines, though they may be closer to the reality, something not reflected in the current pricing.
I also believe this commentary from pundit Steve Deace may be on point. (
http://stevedeace.com/news/iowa-caucus-math-for-grown-ups/) Deace certainly has his biases, so like many members of the Mediaverse his views get taken with a grain of salt, but he also happens to be on the scene in Iowa, and there is substance to the way he breaks down the particulars. An earlier column by Deace also brought some logical food for thought –
http://stevedeace.com/news/pollsters-and-their-fools-paradise/
“So now we have FOX as well as CNN producing polls this week that show 300,000 Iowans are voting in the Iowa Caucuses, and therefore Trump with a double-digit lead. Allow me to put those projected turnout numbers in perspective:
–That’s about a 200% voter increase from the highest Iowa Caucus turnout ever back in 2008.
–The most voters we’ve had in a primary (which always has higher turnout) in Iowa this century is only 230,000. And our last U.S. Senate primary had only roughly 150,000 voters in 2014.
–There are actually 11,000 fewer registered Republicans in Iowa this January than in January 2015.
Given those facts, I simply do not believe the projected turnout models in these polls. I have no idea why these polls have suddenly produced these massive turnout models in their weighting in the last week. Perhaps it’s as simple as Trump has consistently polled lower in Iowa than everywhere else, and they’re concerned with getting caught with their pants down come caucus night. I don’t know. But there is absolutely zero evidence on the ground you’re going to see a turnout that massive.”
That was written before yet another plot twist took place, Trump announcing (
http://money.cnn.com/2016/01/26/media/donald-trump-poll-debate-fox/) that he will not participate in Thursday’s debate on Fox, coming from Des Moines. This has a chance to make his backers in the state just a touch skittish, and based upon the closeness of the polls that I trust the most, and the fact that in their breakdowns they were showing much of Trump’s support coming from folks that have not taken part in the Caucus process in the past, it makes Cruz a value in this price range.