The Alpaca. The animal. The business...

When Stocks Tank, Some Investors 

Stampede to Alpacas... 

By JENNIFER LEVITZ

Given the gyrations in the financial markets, 
some investors are abandoning stocks and bonds 
and seeking refuge in unusual alternatives

Associated Press

Peggy Parks invested in alpacas, 
which she believes have a better outlook than most mutual funds.

Investors have long turned to hard assets
in market downturns, the idea being
that if you invest in something real, it won't disappear, 
even if its value declines. 
But analysts say this downturn is different in that
real estate, the most traditional safe haven, is also sinking. 
Between July 2006 and July this year, home prices dropped 19.5%, 
according to the S&P/Case-Shiller 20-city 
composite home price index.

After the market dropped in January, Steve Borter, the 56-year-old
president of a heating-and-air-conditioning company, 
did invest in real estate, but not the usual sort. 
He became landlord of a single parking space in Chicago. 
He bought a 12-by-20-foot spot in the Field Harbor
Parking Garage for $29,000 and rents it out. 
"The stock market is indicative of a lot of uncertainty. 
With a parking space, at least you
end up with something," he says.

Peggy Parks, a 49-year-old auditor in Johnstown, Pa., turned to an
unusual farm animal. "I've lost a fortune in stocks, and my 401(k) is
falling through the floor. I feel comfortable in alpacas," she says.
She invested $56,000 in a small herd that she believes 
has a better outlook than most mutual funds 
because of the animals' breeding potential.

The national Alpaca Registry Inc., in Lincoln, Neb., says
registrations are on pace to rise 7% this year and currently stand at
140,297. Ms. Parks says a female of "medium quality" can fetch $10,000
and that prices have been rising, supporting her hopes that she'll see
a profit on her alpaca portfolio in five years.