Cricket: A case of irrational exuberance?
- Sunday’s World Cup final clash would've made for a very high-risk, high-return contrarian bet, given high expectations for the home team. As it turned out, the game’s ‘glorious uncertainties’ prevailed.
In asset markets, irrational exuberance offers space to profit from it if one can bet on a correction forced by a reality check. The more inflated a price is, the bigger the chance to make a buck. A similar opportunity has long been suspected to exist in an illegal market for betting on cricket match outcomes, with the odds offered by sundry bookies often reckoned to be reflective of a nationalist over-bet in favour of the home side.