The Compound and Friends

Stocks After a Rate Cut With Nick Colas, the End of Quarterly Earnings Reports, Strategy Denied S&P Inclusion

88 snips
Sep 16, 2025
Nick Colas, co-founder of DataTrek Research and author of their morning briefing newsletter, dives into intriguing market topics. He analyzes potential interest rate cuts and their varying impacts on sectors like home builders. Colas compares modern tech giants like NVIDIA and Meta to historical benchmarks, discussing the importance of evolving business models. A fascinating debate on shifting to semi-annual earnings reporting highlights transparency challenges. They also touch on the intersecting worlds of aging finance and crypto dynamics, considering index inclusion complexities.
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INSIGHT

Quarterly Reports Existed To Prevent Scandals

  • Removing quarterly reporting risks reducing transparency and enabling cover-ups.
  • Quarterlies were introduced to deter recurring frauds and increase timely investor oversight.
ADVICE

Let Companies Choose Reporting, Expect Market Pricing

  • Allow optional semiannual reporting but expect market penalties for less disclosure.
  • Investors will favor companies that keep 90-day transparency, creating valuation gaps.
INSIGHT

Algorithms Prioritize Profit Over Public Good

  • Adam Butler argued modern capitalism prioritizes corporate profit over citizens’ well-being.
  • Social media algorithms maximize engagement and ad revenue, worsening societal harms.
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