I recently read this post on the financial blog “The Consumerist” and was immediately drawn by the slightly off-kilter focus on alpacas.

The post discusses the “alpaca bubble” that has been occurring in North America, and the huge investments people have placed in the alpaca breeding business as a result. However, as the post states, “…the market for camelid hair wasn’t what it was cracked up to be, and not only are investors realizing they will never get their money back, there are a large number of alpacas being neglected or killed as a result.” (Morran)

Many parallels can be drawn between this incidence and the emu craze of the 80’s, where many Texas farmers lost their investments (Katz). This story can be seen in this article in the LA Times.

As I see it, just as was the case with the emu market, the alpaca market is an investment fad. According to Investopedia, “Fads are generally marked by temporary and excessive enthusiasm, which turns out to be unsustainable.”

Despite my limited knowledge on finance, given what I have learned in class, as an investor you want to have equity in a market that’s both transient and sustainable. As was seen in the emu market of the 80’s, it is very likely that the alpaca market is neither transient nor sustainable.

Works Cited:

Katz, Jesse. “Emus: The Craze That Didn’t Fly.” Los Angeles Times. Los Angeles Times, 16 Dec. 1997. Web. 09 Nov. 2014.

Morran, Chris. “The Alpaca Bubble Has Finally Burst.” Consumerist. The Consumerist, 7 Nov. 2014. Web. 09 Nov. 2014.

Image: http://www.chaffhaye.com/talking-alpacas/