Money Talk Quiz, June 2023

Each week, advisors on the Money Talk Podcast cover a range of developments affecting long-term investors. The Money Talk Quiz reviews some of their insights in a multiple-choice quiz. (Answers include links to further resources.) […]

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Dollar QuestionEach 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 April 28 Money Talk Podcast, Steve Giles explained what he tells investors who ask when is the best time to put money to work in the financial market. Which one of the following did Steve mention?

(Choose one.)

  1. Contrarily, whenever you feel it’s time to get out of the market
  2. Whenever you sense it’s the bottom of a sell-off
  3. Whenever you have a balanced portfolio and a long time horizon
  4. Whenever the forward price-earnings ratio on the S&P 500 dips below its 10-year average

(See answer below.)

2.

Adam Baley explained that pulling out of the market to try to avoid bad days carries the risk of missing out on good days.  To counter the discredited expression “sell in May and go away,” Adam offered: “Buy in October and stay.” In the April 28 Money Talk Podcast, what context did Adam give for his reference.

(Choose one.)

  1. Markets traditionally rally starting with the baseball World Series.
  2. Markets broadly have gained since hitting three-year lows last October.
  3. October is when market valuations almost always are at their lowest.
  4. October is when markets tend to be least volatile.

(See answer below.)

3.

In the May 5 Money Talk Podcast, Tom Pappenfus offered reasons for being cautious toward stocks at the moment. Which one of the following was an example he gave?

(Choose one.)

  1. Low valuations compared to 10- and 20-year averages
  2. Low price-earnings (P/E) ratios
  3. Sell in May, go away
  4. Only a handful of companies generated 60% of the returns.

(See answer below.)

4.

In the May 5 Money Talk Podcast, Kendall Bauer noted that large pension funds have been shifting more weight toward bonds. What did Kendall say that tilt from stocks suggests about professional fund managers?

(Choose one.)

  1. They’re fleeing the uncertainty of stocks.
  2. They expect markets to settle into a higher interest rate environment.
  3. They are unconcerned about the debt ceiling confrontation.
  4. They consider stock valuations as too pricey.

(See answer below.)

5.

In the May 12 Money Talk Podcast, Art Rothschild discussed questions he has received about when it’s better to pay down debt than to invest. Which of the following was part of Art’s response?

(Choose one.)

  1. Pay down debt when the stock market is volatile.
  2. Reducing debt is almost always the better choice.
  3. The advice varies by individual circumstances.
  4. Investing is always the better choice.

(See answer below.)

6.

In the May 19 Money Talk Podcast, Mike Hoelzl explained how consumer spending patterns have shifted away from predominantly goods during the COVID-19 outbreak to largely services lately. According to the discussion, why is that shift significant?

(Choose one.)

  1. The economy is still finding an equilibrium after the pandemic.
  2. Long-term investors need to shift the balance in their portfolios.
  3. Such turnarounds usually precede a stock market sell-off.
  4. Such turnarounds usually precede a recession.

(See answer below.)

Answers

1.

c. Whenever you have a balanced portfolio and a long time horizon

Learn more
When Should I …rebalance my portfolio? by Art Rothschild
Stocks: Long-term, consistent returns, a Money Talk Video with Dave Sandstrom
The Importance of Balance for Investors, a Money Talk Video

2.

b. Markets broadly have gained since hitting three-year lows last October.

Learn more
Don’t Sell in May; Don’t Go Away, a Money Talk Video with Marc Amateis
For What It’s Worth: Sell in May, by Joel Dresang
Checklist for circumstances beyond control, by Joel Dresang

3.

d. Only a handful of companies generated 60% of the returns.

Learn more
Broader views of market movements, a Money Talk Video with Dave Sandstrom and Kyle Tetting
Support for stocks, beyond the calendar, by Kyle Tetting
Concentrated gains, broad participation, by Kyle Tetting

4.

b. They expect markets to settle into a higher interest rate environment.

Learn more
Investor upsides as interest rates rise, a Money Talk Video with Kendall Bauer and Kyle Tetting
Bonds also face investment risks, a Money Talk Video with Tom Pappenfus
Get the total picture of your investments, a Money Talk Video with Paige Radke

5.

c. The advice varies by individual circumstances.

Learn more
Mortgage debt in retirement: Worth a talk, by Joel Dresang
Retiring debt in time for retirement, a Money Talk Video with Dave Sandstrom
Your housing plan, by Brian Kilb
Having the confidence to retire, a Money Talk Video with Art Rothschild
For What It’s Worth: Mortgage, by Joel Dresang

6.

a. The economy is still finding an equilibrium after the pandemic.

Learn more
Positive signs amid “wall of worry,” by Kyle Tetting
2022 Investment Outlook Seminar, a Money Talk Video
Economy keeps counting on consumers, by Joel Dresang

PREVIOUS MONEY TALK QUIZZES
(initially posted May 26, 2023)

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