Information Timing and Release: The Debate over Quarterly Reporting and Fed Guidance!

In this session, I talk about two long-running stories in markets, the first relating to a SEC proposal to replace quarterly with semi-annual reporting for US firms and other to Kevin Warsh's (the new Fed chair) view that the Fed should speak less and provide less guidance. The common themes in both stories is that they remove "news" that the market has become to receiving and using to set prices, and the advocacy and opposition to both proposals share commonalities. Advocates for the changes argue that removing quarterly reporting will make makes less "short term" and that reducing Fed guidance will also reduce the gaming around Fed actions. Opponents to the changes point to the loss of information that markets can use to set prices, and increased volatility in markets.
I see shades of grey. I do like access to quarterly reports in my investing, since they allow me to update my valuations more frequently, but I also believe that earnings reports have become bulky and filled with distractions. Rather than reducing the frequency of reporting, I would prefer slimmer reports that have less management guidance and prognostications.
As for the Fed, I do think it is healthy for investors to step back from the post-2008 view of the Fed as an all-powerful institution that can set interest rates and alter the trajectory of the economy. Neither perception is based in reality, and a world where we see less and hear less from the Fed will be a healthier one.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/blog/quarterly.pdf
Blog post: Receive SMS online on sms24.me

Watch on YouTube

Subscribe on YouTubeReaderBot

TubeReader video aggregator is a website that collects and organizes online videos from the YouTube source. Video aggregation is done for different purposes, and TubeReader take different approaches to achieve their purpose.

Our try to collect videos of high quality or interest for visitors to view; the collection may be made by editors or may be based on community votes.

Another method is to base the collection on those videos most viewed, either at the aggregator site or at various popular video hosting sites.

TubeReader site exists to allow users to collect their own sets of videos, for personal use as well as for browsing and viewing by others; TubeReader can develop online communities around video sharing.

Our site allow users to create a personalized video playlist, for personal use as well as for browsing and viewing by others.

@YouTubeReaderBot allows you to subscribe to Youtube channels.

By using @YouTubeReaderBot Bot you agree with YouTube Terms of Service.

Use the @YouTubeReaderBot telegram bot to be the first to be notified when new videos are released on your favorite channels.

Look for new videos or channels and share them with your friends.

You can start using our bot from this video, subscribe now to Information Timing and Release: The Debate over Quarterly Reporting and Fed Guidance!

What is YouTube?

YouTube is a free video sharing website that makes it easy to watch online videos. You can even create and upload your own videos to share with others. Originally created in 2005, YouTube is now one of the most popular sites on the Web, with visitors watching around 6 billion hours of video every month.