Prediction markets are booming, with Americans betting on everything from sports to Labubus. Trader Danny Moses, known from ‘The Big Short,’ believes the market will expand. He suggests investors pay attention to platforms like Polymarket and Kalshi, offering a new way to gamble and navigate markets.

Moses, from “The Big Short,” points out that prediction markets are useful for investors to stay ahead. These markets offer valuable insights for bullish and bearish investors. For example, SoFi Technologies has a 38% chance of being added to the S&P 500, a potential catalyst for its stock.

Prediction markets could provide better risk-reward opportunities compared to traditional derivatives, according to Moses. For instance, betting on whether bitcoin will trade below $70,000 in the first quarter of 2026 may offer more appealing odds than buying put options. Moses believes prediction markets will become more prevalent as predictive tools for hedging investments.

In Moses’ opinion, prediction markets are still in their early stages but will grow in usefulness for investors. They will become crucial for predicting market-moving events and hedging traditional investments. As these markets expand, more prominent players are likely to join in.

Read more at Yahoo Finance: Why ‘Big Short’ trader Danny Moses thinks investors need to pay close attention to prediction markets