Investors are always searching for the next hot thing. Which company has the next Thomas Edison or Steve Jobs working in its research and development? One place to check may be a list of its stockholders, research suggests. Companies with high levels of institutional ownership — think pension funds instead of day traders at their home computers — tend to have more patents. It’s not because the institutional investors are better at finding innovative companies, say the researchers from Harvard, the London School of Economics and the University of Chicago. Rather, it’s that institutional investors are more accepting of the hits and misses inherent in R&D. They’re less likely to fire a CEO if things go wrong for unpredictable reasons.
What shape do you take?
Depending on how quickly you think the rebound will come, you could be an L, U, V or W.
• An “L” is the most pessimistic of scenarios, projecting that once the economy stops free-falling, it will simply stagnate.
• A “U,” meanwhile, indicates a more gradual rebound.
• A “V” is the most optimistic, entailing a sharp, vigorous rebound.
• A “W” would take investors on a double-dipping roller coaster.
After surveying more than 250 institutional investors and hedge funds, Barclays Capital found that most are predicting either a “U” — 37 percent — or the dreaded “L” — 34 percent.
Trustworthy people have the look.
Ever get the feeling that someone just looks trustworthy? Your instincts may be accurate.
People who look trustworthy often are more creditworthy, according to researchers from Rice University and the University of Washington. They scoured , a website that matches people seeking loans with lenders. After culling photos of loan-seekers, the researchers asked a group to rate how trustworthy each was, based solely on appearance.
The researchers found that seekers with high trustworthy ratings also tended to have high ratings on their credit profile on . A person’s attractiveness had some influence, but it wasn’t the only factor in determining trustworthiness.
Bank of England ready to buy.
The United Kingdom recently jumped aboard the QE ship. Not the Queen Elizabeth 2 but “quantitative easing.” Under the policy, the Bank of England will pursue some new methods of reviving the economy, beyond just cutting interest rates. The central bank has offered to buy 2 billion pounds ($2.76 billion) of government bonds as a way of injecting cash into the economy.
Stan Choe and Ji Qi, The Associated Press
