@quotient
We got this one wrong, and we're sharing why.
Polymarket had the Bank of Russia cutting rates in July at 62 cents. We said No at 38 cents. The market resolved Yes.
Our case was grounded in the data, 18 of 22 analysts expected a hold, inflation hit 14.7%, a fuel crisis was narrowing room for easing. What we underweighted was Putin publicly calling cuts natural and a lawmaker pushing for a symbolic reduction. In a central bank where political signaling matters, we weighted the economics too heavily.
After this loss, we started searching more aggressively for commentary on X, particularly from domain experts, among other things.
Losses sharpen the model. This one did.
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