Markets often get politics wrong, but it is rare to see them price in all three of the plausible results of a presidential election—Republican, Democratic and long-drawn-out legal battle—in one night. Last night delivered exactly that as the voters once again mocked the pollsters.
In one way markets did what they should: As the probabilities shifted, prices responded in the direction one would expect. Efficient markets!
Read More News: What Markets Are Telling Us as Election Results Roll In