Each week in the Money Talk Podcast, Landaas & Company advisors offer insights for long-term investors by discussing the ever-changing circumstances of the financial markets. Try to answer the following questions, based on some of those conversations.
1.
In the Sept. 2 Money Talk Podcast, Kendall Bauer explained the process of tax loss harvesting, in which an investor sells shares at a net loss and then reinvests the proceeds. Why did he say investors might consider such a move?
(Choose one.)
- To reset and start fresh on an investment with better prospects
- For tax purposes, the losses can offset gains from other investments
- To maintain a portfolio in which all components always are gaining
- For behavioral reasons, cutting losses can instill confidence
(See correct answer below.)
2.
In the Sept. 9 Money Talk Podcast, Paige Radke talked about the wide range of stock forecasts by big investment banks. What conclusion did she suggest investors take from the extraordinary divergence of opinions?
(Choose one.)
- Forecasters are not used to making projections amid such high inflation.
- Rising interest rates have thrown forecasting models off track.
- Uncertainty is running high, which tends to trigger market volatility.
- Heightened competition among investment banks has pushed forecasts to be bolder.
(See correct answer below.)
3.
In the Sept. 16 Money Talk Podcast, Dave Sandstrom commented on the Federal Reserve’s efforts to lower inflation by raising interest rates. Where did Dave say we can already see signs of the Fed’s efforts showing?
(Choose one.)
- Domestic automotive production
- Global copper prices
- Online gambling sites
- Mortgage demand
(See correct answer below.)
4.
Tom Pappenfus talked about two specific demographic groups and how they possibly could benefit from bear market conditions in stocks. In the Sept. 16 Money Talk Podcast, which pair of groups did Tom discuss?
(Choose one.)
- Retirees and workers nearing retirement
- Young people and retirees
- College students and retirees
- Young people and workers nearing retirement
(See correct answer below.)
5.
Stocks sold off dramatically after the Federal Reserve’s latest boost in interest rates to address inflation. In the Sept. 23 Money Talk Podcast, Art Rothschild
said the Fed should be happy with the market’s reaction. Why?
(Choose one.)
- Higher stock valuations might encourage more spending, further fanning inflation.
- Lower stock prices punish investors who have been critical of Fed policies.
- The sell-off distracted public attention from the Fed’s struggles with inflation.
- The sell-off created opportunities for the Fed to buy more stocks.
(See correct answer below.)
Answers
1.
b. For tax purposes, the losses can offset gains from other investments
Learn more
Plan now for year-end investment moves, a special Money Talk Podcast
Capital gains distributions, by Tom Pappenfus
Mind correlation to control risk, a Money Talk Video with Paige Radke
2.
c. Uncertainty is running high, which tends to trigger market volatility.
Learn more
Summer calm belies uncertainties ahead, by Kyle Tetting
Why investments outperform their investors, a Money Talk Video with Kyle Tetting
For What It’s Worth: Volatility, by Joel Dresang
3.
d. Mortgage demand
Learn more
Fed needs tools, time, incremental tuning, by Kyle Tetting
Putting housing in its place, by Joel Dresang
Your Housing Plan, by Brian Kilb
4.
b. Young people and retirees
Learn more
Talking Money: Dollar Cost Averaging, a Money Talk Video
The outlook for value in your portfolio, a Money Talk Video with Kyle Tetting
5.
a. Higher stock valuations might encourage more spending, further fanning inflation.
Learn more
Revisit balance: Gain from Powell’s “pain”, by Kyle Tetting
Investors and the business cycle, a Money Talk Video with Dave Sandstrom
PREVIOUS MONEY TALK QUIZZES
(initially posted Sept. 30, 2022)
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