What do small, inexpensive, stuffed animals have to do with stocks?
A lot, when the stuffed animals are Beanie Babies, said Kenneth M. Sobolewski, a principal with Barclays Global Investors, Chicago.
Through his wife, Mary Beth -- dubbed the "queen of Beanies" by a local newspaper -- Mr. Sobolewski has learned speculators seeking big bucks can drive more than just stock prices to new heights.
"It's been a phenomenon," Mr. Sobolewski said.
Ms. Sobolewski went from being an incidental buyer of the toy a few years ago to becoming the editor-in-chief of Mary Beth's Beanie World, a magazine with a circulation of 500,000.
He said his wife and kids bought their first Beanie Baby while on vacation because it was cute and cheap.
Then they got caught up in the craze.
"It started to snowball," as his wife learned the ins and outs of Beanie Babies, he said.
She soon made a name for herself as an astute collector of the coveted cuddlies.
The mania hasn't gripped Mr. Sobolewski. "I don't have a collector's mentality. I've likened it to a cult, in a nice way."
Like the stock market, though, speculators are driving prices higher, he said. "It's the same principles at work."
For that reason, Mr. Sobolewski can't predict where the Beanie Baby market is headed, although he said the toys appear to have gone beyond fad status.
Mr. Sobolewski hasn't contemplated designing a Beanie Baby index, and when it comes to making Beanie-related decisions, he doesn't get involved with his wife's business.
"She's very much the brains of this operation."
