Invest Like A Farmer

Invest Like A Farmer is an investing blog by T. H. RAPKO AND COMPANY, LLC’s managing member Thomas H. Rapko focused on macroeconomics. It presents Tom’s insights and thoughts on the markets. Although the author expresses a view on the likely future performance of certain investment instruments, each individual should carefully consider his or her investment position in relation to his or her own circumstances and with the benefit of professional advice prior to making any investment decisions.

Tuesday, November 22, 2016

Snapchat Spectacles

A fine example for all you aspiring readers who want to Invest Like A Farmer of "scarcity value" (and most likely a bubble) is the launch and ravenous demand for Snapchat Spectacles. Some choice commentary by an arbitrage master who literally rented a helicopter to get 4 pairs: "I have no clue what these things do. I don't even have a Snapchat," commented John Reuter to the Wall Street Journal. Yet these $130 glasses were quickly flipped for over $1200 each.

The mania in buying, especially prior to holidays for hot items with limited supply is a great niche economic field. Master of product launch exploit it to the fullest, creating scarcity by advertising products that were manufactured to run out with timed releases across multiple high-visibility channels. Two great books on this phenomenon are Extraordinary Popular Delusions and The Madness of Crowds and Tulipmania: The Story of the World's Most Coveted Flower & the Extraordinary Passions It Aroused.