BULLS & BEARS: Markets way too focused on quarterly profit outlook
A new report by the CFA Centre for Financial Market Integrity and the Business Roundtable Institute for Corporate Ethics calls on various constituents in business and investing to break their focus on “shorttermism.” A key recommendation in the report, titled “Breaking the Short-term Cycle,” urges corporate leaders, asset managers, institutional investors and analysts to end the practice of quarterly earnings guidance. This Wall Street ritual is counterproductive on a number of fronts. By itself, the term “guidance” exposes the hypocrisy…