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Super Bowl 2016 is coming up! San Francisco-based startup, Fantex, offers 6 "trading stocks" tied to the future earnings of professional athletes. Vernon Davis of the Denver Broncos is one of them. The company views these offerings as more secure than existing stocks, as they will likley never be affected by broader market events. Financial advisers on the other hand, urge caution, feeling these stocks are not a good long-term investment. It'll be interesting to see how new asset classes such as this end up playing out. Oh, and there is a shout out to Openfolio CEO Hart Lambur in there as well...
The company says one of the big benefits of its securities is that they will likely never be affected by broader market events. “It provides tremendous value to investors to have access to a noncorrelated asset class,” said Mr. French, who is also CEO. Fantex uses a host of data in calculating each athlete’s earnings potential, including playing statistics, which he says is a draw for investors since they can use the same data to derive their own estimates.
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