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Sports Betting: The Next Alternative Asset?

Pedro Vergel Eleuterio Or I can speculate and place a bet backing my team and making for an even better day out, if they http://topslots9duoj.envision-web.com win. Finance researchers say they see similar behavior among retail investors and nonprofessional bettors. You have that emotional component, and that creates behavioral imbalances. Retail bettors prefer to back the favorites, where they get worse odds. They’re paying a premium to bet on the favorites. So when you bet against the favorite—as in our study—you are systematically getting better odds. A retail bettor wouldn’t normally bet against their team to hedge themselves. But in financial terms, that would be a rational behavior. So betting against the favorite is a value strategy? Yes. We have a long history in financial markets of successful trading strategies.

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