Each week in the Money Talk Podcast, Landaas & Company advisors offer insights for long-term investors. Try to answer the following questions, based on some of the recent Money Talk conversations.
1.
In the March 7 Money Talk Podcast, Tom Pappenfus said recent sell-offs in stocks were encouraging signs that investors were shifting assets more than exiting the market. Which of the following did Tom cite specifically as a positive indicator?
(Choose one.)
- A surge in growth stocks
- A decline in money market inflows
- A broadening from the Magnificent Seven stocks
- A rise in 10-year Treasury yields
(See answer below.)
2.
In a discussion of the recent 10% decline of the S&P 500 from its recent peak in February, Steve Giles explained in the March 14 Money Talk Podcast that the setback was a regular, healthy occurrence known as which of the following?
(Choose one.)
- A bull market
- A bear market
- A recession
- A correction
(See answer below.)
3.
In the March 14 Money Talk Podcast, John Sandstrom noted that stocks had been due for a 10% reduction, considering the previous one occurred In 2023. How frequently did John say a 10% sell-off has occurred since 1980.
(Choose one.)
- About half of the calendar years
- About one-third
- About one-quarter
- About one-tenth
(See answer below.)
4.
In the March 21 Money Talk Podcast, Dave Sandstrom explained why the Federal Reserve Board might be prudent to have decided not to further lower interest rates yet. Which of the following did Dave mention?
(Choose one.)
- The Fed still has room to cut rates later if the economy gets too weak.
- The Fed can exert its political independence by leaving rates alone for now.
- The Fed relies on the stock market, which recently had a setback.
- Uncertainty over the Fed’s next move will divert attention from stock volatility.
(See answer below.)
5.
In the March 21 Money Talk Podcast, Adam Baley explained how the recent stock market sell-off occurred without critical changes in investing fundamentals. Which upcoming event did Adam cite, which possibly could show changes in fundamentals?
(Choose one.)
- Federal budget negotiations
- Trade talks with Europe
- Earnings season
- Cease-fire talks in Ukraine
(See answer below.)
Answers
1.
c) A broadening from the Magnificent Seven stocks
Learn more
- Broader views of market movements, a Money Talk Video with Dave Sandstrom
- Market Breadth: Definition, Indicators, and How Investors Use It, from Investopedia
- The Stock Market’s Breadth Is Improving. Why It Matters, from Barron’s (Aug. 2024)
2.
d) A correction (Note: There are varying definitions, but we consider a correction as a drop of closing prices for the S&P 500 by 10% or more from its most recent peak close.)
Learn more
- The ups and downs of volatility, a Money Talk Video with Steve Giles
- The vocabulary of stressed markets, from the Financial Industry Regulatory Authority
- Volatility: Stock market vs. your portfolio, a Money Talk Video with Kyle Tetting
3.
a) About half of the calendar years, according to analysis by Fidelity Investments
Learn more
- Investors: Prepare for stock corrections, a Money Talk Video with Kyle Tetting and Paige Radke
- Stock market corrections: Always be prepared, a Money Talk Video with Brian Kilb and Marc Amateis
- Beginners Guide to Asset Allocation, Diversification and Rebalancing, from the U.S. Securities and Exchange Commission
4.
a) The Fed has room to cut rates later if the economy gets too weak.
Learn more
- The Fed: What investors should know, a Money Talk Video with Dave Sandstrom
- Federal Reserve issues FOMC statement, from the Federal Reserve Board
- Cautious optimism: A balancing act, by Kyle Tetting
5.
c) Earnings season
Learn more
- What to make of earnings season, a Money Talk Video with Dave Sandstrom
- When Is Earnings Season? from Investopedia
- How to Read an 8-K, from Investor.gov