Quarterly earnings were mandated by the SEC in 1970 to increase transparency, and some analysts believe that changing the reporting schedule could lead to greater uncertainty and market volatility, while others see potential benefits for companies and investors.
I know what you mean, but the "Market" is blind. The "quarter economy" is an expression meaning the "short-sighted economy". But it's not quarterly reports causing the short-sightnedness.
If there are no quarterly reports, investors will just look for information elsewhere. All it will do is open the doors even more for corruption.
Yes, and I don’t buy the argument that management’s lack of focus can be excused by pressure from quarterly reports. I’m sure there are solid arguments in favor of that view, but it’s hard not to be cautious when so many changes are happening at once (e.g. the Fed).
Coming next: ...and if private sector only reports twice a year, why should we have a monthly CPI/PPI/PCE/NFP, let alone weekly unemployment numbers?
Quarterly earnings were mandated by the SEC in 1970 to increase transparency, and some analysts believe that changing the reporting schedule could lead to greater uncertainty and market volatility, while others see potential benefits for companies and investors.
It's easier to manipulate the markets if you not only have the advantage of advance knowledge, but your marks lack any knowledge!
Im sure that's why Donnie is doing it.
But wouldn't this also help break the super short term pursuit of profits taking precedence over more sustainable business problem?
bear with me i have phrased the above horribly.
I know what you mean, but the "Market" is blind. The "quarter economy" is an expression meaning the "short-sighted economy". But it's not quarterly reports causing the short-sightnedness.
If there are no quarterly reports, investors will just look for information elsewhere. All it will do is open the doors even more for corruption.
fair point
Yes, and I don’t buy the argument that management’s lack of focus can be excused by pressure from quarterly reports. I’m sure there are solid arguments in favor of that view, but it’s hard not to be cautious when so many changes are happening at once (e.g. the Fed).
https://archive.is/ts6yp