Prediction Markets: Investing, Gambling or a Haven for Insider Trading?

Description

In this week's episode of WSJ’s Take On the Week, co-hosts Miriam Gottfried and Telis Demos look at why the Magnificent Seven stocks—including Microsoft, Meta, and Google parent Alphabet—are losing their luster. Are investors finally demanding to see results from AI spending, or are they content with the continued AI infrastructure spending? Then, they dive into the residential real-estate cycle, where we’ve seen national rent growth hit a decade low. Could deeply discounted multifamily Real Estate Investment Trusts, or REITs, be the value play of the year? Then, Telis and Miriam confront prediction markets, which have been in the news lately for high-profile arrests of insiders accused of trading on confidential information. They are joined by former Susquehanna International Group trader Andrew Courtney, co-founder of prediction markets platform Kalshinomics, who digs into the mechanics of these zero-sum contracts, insider trading and the ongoing legal battles with the U.S. Commodity Futures Trading Commission over their classification. Courtney details how professional market makers provide the liquidity that distinguishes them from a bet against the house. And he gives his take on how investors should engage with prediction markets. This is WSJ’s Take On the Week where co-hosts Telis Demos, Heard on the Street’s banking and money columnist, and Miriam Gottfried, WSJ’s investing and wealth management reporter, cut through the noise and dive into markets, the economy and finance—the big trades, key players and business news ahead. Have an idea for a future guest or episode? How can we better help you take on the week? We’d love to hear from you. Email the show at takeontheweek@wsj.com. To watch the video version of this episode, visit our WSJ Podcasts YouTube channel or the video page of WSJ.com Further Reading U.S. Soldier Charged With Using Classified Information to Bet on Maduro’s Ouster White House Warns Staff Not to Place Bets on Prediction Markets Amid Iran War Trio of Polymarket Accounts Made $600,000 Be