This Crowd was none too wise, or else just not large and diverse enough.
A year ago I challenged
readers to predict the results of economic data and political events at
the end of, or during, 2006. I received 25 responses to the 20 US and
World events questions, and 8 responses to the 12 Canadian event
questions. Median score, and the Wisdom of Crowds score (the number of
times the most popular answer was the correct one), were both 11 out of
20 on the US and World events questions and 4 out of 12 on the Canadian
events questions. Due to the few responses there was no prize for the
Canadian events questions (Gary and Marty had the top scores, tied at 6
out of 12). Runaway winner for the US and World events questions was Henrik Torstensson,
a student at the Stockholm School of Economics with a remarkable 15 out
of 20, two more than the runners-up and far better than the Crowd. He
wins a 50€ certificate to a book or music store of his choice.
The questions, with the correct answers in bold:
US and World Events:
- What
will the S&P 500 stock index close at on the last day of trading in
2006 (it's currently at 1271): (a) under 700, (b) 700-1000, (c)
1000-1300, (d) 1300-1600, (e) 1600-1800, (f) over 1800
- What
will the NASDAQ stock index close at on the last day of trading in 2006
(it's currently at 2274 and on a tear): (a) under 1500, (b) 1500-1900,
(c) 1900-2300, (d) 2300-2700, (e) 2700-3000, (f) over 3000
- What will the 12-month change in the average US housing prices be at September 30, 2006 (using the OFHEO
'purchase only' data) (as at September 30, 2005 it was +10.95%): (a)
decline of more than 20%, (b) decline of 10-20%, (c) decline of 0-10%,
(d) increase of 0-5%, (e) increase of 5-10%, (f) increase of more than
10%
- What will the US national debt be at the last reported date of 2006 per the US Treasury Dept.
(at the end of 2005 it was $8.2 trillion, up almost 10% from a year
earlier): (a) less than $8 trillion, (b) $8-8.5 trillion, (c) $8.5-9
trillion, (d) $9-9.5 trillion, (e) $9.5-10 trillion, (f) over $10
trillion
- What will the annualized US trade deficit be as at the end of October 2006 per the Census Bureau
(as at October 2005 it was $718 billion, up about 25% over the previous
year's deficit, pushing the accumulated deficit up over $9 trillion):
(a) less than $600 billion, (b) $600-700 billion, (c) $700-800 billion,
(d) $800-900 billion, (e) $900 billion to $1 trillion, (f) over $1
trillion
- What will the US average 15-year new mortgage rate be at the end of 2006 per Bloomberg
(at the end of 2005 it was 5.25%, up from 4.76% a year earlier): (a)
less than 5%, (b) 5-5.5%, (c) 5.5-6%, (d) 6-8%, (e) 8-10%, (f) over 10%
- What will the US (CPI) inflation rate be for 2006 (the rate for 2005 was 3.4%): (a) negative, (b) 0-2%, (c) 2-4%, (d) 4-6%, (e) 6-10%, (f) over 10%
- What will be the value of the Real Broad Dollar Index of the US dollar versus other major currencies per the Fed
at the end of 2006 (the rate at the end of 2005 was 110.8, down from
113.6 a year earlier and 126.7 in 2002): (a) less than 90, (b) 90-100,
(c) 100-105, (d) 105-110, (e) 110-115, (f) over 115
- How many US
Senate seats will the Republicans hold after the 2006 mid-term
elections (they currently hold 55, and 33 seats will be contested,
about equally split between the two parties): (a) fewer than 48, (b)
48-50, (c) 51-53, (d) 54-56, (e) 57-59, (f) 60 or more
- What
will be the status of the Bush/Cheney presidency at the end of 2006:
(a) both intact, (b) Cheney resigned or impeached, (c) Bush, or both
Bush & Cheney, resigned or impeached, (d) grand jury appointed to
look at impeachable offenses but still in progress, (e) letters of
impeachment drawn up but not yet exercised
- What will be the
status of Blair at the end of 2006: (a) still in power, (b) declared
intention to resign, (c) resigned or removed from office
- What
impact will natural disasters (hurricanes, tsunamis, volcanic
eruptions, earthquakes, melting of the icecap etc.) have on our lives
in 2006 by most accounts: (a) significantly less than 2005, (b)
comparable to 2005, (c) significantly greater than 2005
- Which of these countries will sign the Kyoto accord in 2006: (a) China, (b) the US, (c) both, (d) neither
- What
impact will influenza and other lethal viruses have on our lives in
2006: (a) a lull, with significantly less mention than in 2005, (b)
continued sporadic outbreaks of concern, (c) local epidemics raising
the global influenza death toll to over one million (twice the 'normal'
rate), (d) a global pandemic killing more than ten million people
- What
impact will nuclear weapons threats have on our lives in 2006: (a)
localized threats from Iran, Israel and/or North Korea, (b) significant
threats to use nuclear weapons from additional countries, (c) actual
detonation of one or more nuclear weapons as a hostile act rather than
just a 'test'
- What impact will biological and chemical weapons
(or the blowing up of sites containing lethal chemical or biological
substances) have on our lives in 2006: (a) nothing more than a few
scares, (b) deliberate use of such weapons with 10 to 1000 fatalities,
(c) deliberate use of such weapons by a group or nation with more than
1000 fatalities
- What will light crude futures be priced at at
the end of 2006 (they are currently about $63/barrel, up 40% from a
year earlier): (a) under $50/barrel, (b) $50-60/barrel, (c)
$60-70/barrel, (d) $70-80/barrel, (e) $80-100/barrel, (f) over
$100/barrel
- Which of the following will occur in 2006: (a)
Chavez will be overthrown in Venezuela, (b) Putin will be overthrown in
Russia, (c) both, (d) neither
- The most severe famine of 2006
(killing at least one million people) will occur in (a) East Africa,
(b) Central or West Africa, (c) China, (d) elsewhere in Asia, (e) there
will be no famine that bad
- What will Bush do regarding Iran in
2006: (a) invade, (b) sporadic incursions, no-fly zones and similar
'limited' military action, (c) embargo or other economic action only,
(d) just threats and demands
Canadian Events: (contest open to Canadian respondents only)
- In
the January 2006 election, how many seats will the Liberals win: (a)
fewer than 90, (b) 90-99, (c) 100-109, (d) 110-114, (e) 115-120, (f)
more than 120
- In the January 2006 election, how many seats will the Conservatives win: (a)
fewer than 90, (b) 90-99, (c) 100-109, (d) 110-114, (e) 115-120, (f)
more than 120
- In the January 2006 election, how many seats will the NDP win: (a)
fewer than 10, (b) 10-14, (c) 15-19, (d) 20-24, (e) 25-29, (f)
more than 29
- In the January 2006 election, how many seats will the Bloq win: (a)
fewer than 50, (b) 50-54, (c) 55-59, (d) 60-64, (e) 65-69, (f)
more than 69
- Who
will win the Stanley Cup in 2006: (a) Ottawa, (b) another Canada-based
team, (c) Detroit, (d) another US-based team in the Western Conference,
(e) a US-based team in the Eastern Conference
- Which Canadian party leaders will still be party leaders at the end of 2006: (a) Martin, (b) Harper, (c) both, (d) neither
- When will the next Canadian election be after
the one in January: (a) before the end of June 2006, (b) in the latter
half of 2006, (c) date set for 2007 by the end of 2006, (d) not
scheduled by the end of 2006
- Will Canada suffer a significant terrorist attack (scale of the London subway bombings or greater) during 2006: (a) yes, (b) no
- What
will be the status of Quebec at the end of 2006: (a) referendum held,
majority voted to separate, (b) referendum held, majority voted not to
separate, (c) referendum scheduled but not yet held, (d) no referendum
scheduled or held, but significant powers transferred to Quebec and
other provinces by federal government, (e) none of the above
- What
will the value of the Canadian dollar be relative to the US dollar at
the end of 2006 (it is currently at 86 cents): (a) below 80 cents, (b)
80-84 cents, (c) 84-88 cents, (d) 88-92 cents, (e) 92-96 cents, (f)
over 96 cents
- What
will be the status of Canada-US relations at
the end of the year: (a) Canada or US has withdrawn from NAFTA, (b)
Bush recognizes NAFTA court verdicts and repays illegal duties to
Canada, improving relations, (c) Canadian litigation against US remains
unresolved, relations remain sour, (d) federal government drops actions
against US, and agrees to send Canadian troops to Iraq/Iran,
(e) federal government drops actions against US, but does not
agree to send Canadian troops to Iraq/Iran
- What
will the TSX stock index close at on the last day of trading in
2006 (it's currently at 11500 and on a tear): (a) under 9000, (b)
9000-10000, (c) 10000-11000, (d) 11000-12000, (e) 12000-14000, (f) over
14000
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MADE IN CANADA
trust your
instincts 
