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Trump Wants to Kill Quarterly Earnings—Here's Why Your Retirement Fund Cares
['Adam Hayes', 'Ph.D.', 'Cfa', 'Is A Financial Writer With', 'Years Wall Street Experience As A Derivatives Trader. Besides His Extensive Derivative Trading Expertise', 'Adam Is An Expert In Economics', "Behavioral Finance. Adam Received His Master'S In Economics The New School For Social Research", 'His Ph.D. The University Of Wisconsin-Madison In Sociology. He Is A Cfa Charterholder As Well As Holding Finra Series', 'Licenses. He Currently Researches', 'Teaches Economic Sociology']
Investopedia | Expert Financial Advice and Markets News
Your 401(k) and retirement funds use quarterly reports for rebalancing and risk management—fewer updates could mean bigger market surprises and higher trading costs.
Researchers argue that when Europe ditched quarterly reporting a decade ago, that didn't cure short-term thinking, but it did make analyst predictions less accurate.
President Donald Trump has renewed his push to let public companies report only twice a year instead of filing every quarter.
The move requires changes to SEC rules and would broadly align U.S. practice with the U.K. and European Union, where quarterly reporting has not been mandatory for years.
Instead, firms that stopped quarterly reporting often lost analyst coverage and saw their stock forecasts become less accurate—suggesting the market lost valuable information touchpoints.