Southeastern Alpaca Association

Your Southern Connection To All Things Alpaca

Opinion on Current Investments in Alpacas

Submitted By: Michael Goldston (High Meadow Alpacas)

Everyone loves a bargain. We aggressively shop for low prices on cars, clothes, whatever we fancy, and are delighted when we get a good deal. Yet when it comes to investments (including alpacas), we hesitate to buy when prices are low because we let fear get in the way, thinking prices may go lower.

"Buy Low-Sell High" is one of the most well known secrets to successful investing. Yet few people are able to do that. Why? Because fear and greed occupy opposite ends of the investment "risk/reward" spectrum, and it is emotionally challenging to be in the minority viewpoint (i.e. to be a buyer when most others are selling). Yet that is when the best opportunities are available!

It is no surprise that most people lose money when investing, because they get too enthusiastic when times are good, and too pessimistic at the bottom of the market cycle. But if you wait for the headlines to signal the directional change, you are often too late. The news was still bullish on real estate in 2006; internet stocks in 2000; and tulip bulbs in 1637, and on and on. History seems to repeat itself and investors rarely learn from their past mistakes. Yet these were market tops for these once "hot" investments. Investment euphoria in these, or rather "irrational exuberance" to borrow former FED Chairman Mr. Greenspan's term, is typical when times are very, very good. Beware, don't confuse brains with a bull market!

What does this have to do with alpacas? Everything! It is a buyer's market today, with prices for alpacas selling well off their 2007 highs. If you have ever coveted a high-end bloodline, you can probably afford it now. Make an offer, you may be surprised.

Of course the economy is still exiting from a major recession and both money and buyers are scarce; but this will likely be one of those pivotal times that you will be able to brag about in the future if you step up to the plate. No guts; no glory! Add to your herd today and you will be one happy camper in the near future.