Monday, March 04, 2002

Fund Managers and Inflated Stock Prices

Jim Grant's piece today on the dynamics of share price inflation is well worth reading. If you're job is to run a mutual fund, your job is to own stocks, even when owning those stocks no longer makes sense (in terms of potential upside). Too many buyers chasing too few "good" company stocks equals share price inflation. Which, Grant argues, is where we are at today. Thanks to reader Michael H. for the heads up.