The wisdom of crowds and Street Sense

ChurchilldownsThe 133rd Kentucky Derby was run last weekend, as always on the first Saturday in May.  The winner, Street Sense, wasn’t the pre-race favorite, but that changed by race time (in the morning he was 4-1 and left the gate at 9-2).

I’ve heard that "real bettors" don’t actually bet on the Derby because of all the hype and "dumb money" being put on the line.  More fuel for the wisdom of crowds?

Maybe not, considering that this is only the 3rd time in the past 25 years that the Derby favorite won.  Maybe it was just the horse’s post position – lucky number 7.  Either way, I’d probably just keep the $2 and buy myself a coffee on Sunday morning.