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Latin American Boys Emerging as Next Bubble

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STRIKING IT RICH
DailyFeed
Usually, when investors discuss alternative investments, they’re referring to art, antiques, private equity or hedgies.

However, there’s a new breed of investor that has a much more liberal definition of what an alternative investment can be. The New York Times explains:

“Investors from the United States believe they have found an exotic new prospect: Latin American baseball players, some as young as 13 and many from impoverished families.

Recognizing that major league teams are offering multimillion-dollar contracts to some teenage prospects, the investors are either financing upstart Dominican trainers, known as buscones, or building their own academies. In exchange, the investors are guaranteed significant returns — sometimes as much as 50 percent of their players’ bonuses — when they sign with major league teams. Agents in the United States typically receive 5 percent.”

For the tip, we thank Marginal Revolution.
POSITION:  No positions in stocks mentioned.

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