Money Talk Quiz, August 2023

To reinforce some of the points investment advisors make on the show, we offer multiple-choice quizzes. See how you much you remember. Or, if you missed an episode, get a sample of what you missed. Each answer includes links to further information, in case you want to dive deeper. […]

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Dollar Question

Each week in the Money Talk Podcast, Landaas & Company advisors offer insights for long-term investors by discussing the financial markets. Try to answer the following questions, based on some of those conversations.

—

1.

In the June 30 Money Talk Podcast, Art Rothschild suggested the wealth effect may be encouraging U.S. consumers to spend more while the Federal Reserve is trying to slow economic growth. What is the wealth effect?

(Choose one.)

  1. Confidence in rising incomes
  2. Extra money from tax cuts
  3. Confidence from rising stock and home prices
  4. Belief that the rich always get richer

(See answer below.)

2.

In the June 30 Money Talk Podcast, Mike Hoelzl talked about how higher interest rates have made cash accounts like money market funds more attractive. What did Mike warn against?

(Choose one.)

  1. Moving money from other investments to cash too slowly
  2. Losing sight of long-term investment strategies
  3. Putting all your eggs in one basket
  4. Ignoring limits on how much FDIC will insure

(See answer below.)

3.

Adam Baley spoke in the July 7 Money Talk Podcast about average wage increases exceeding inflation for the first time in a couple of years. Why did Adam say he was enthused by that development?

(Choose one.)

  1. It encourages consumer spending.
  2. It discourages higher wage demands.
  3. It discourages the Federal Reserve from raising interest rates.
  4. It encourages the Federal Reserve to raise interest rates.

(See answer below.)

4.

Dave Sandstrom explained in the July 7 Money Talk Podcast that investors have more incentives to rebalance their portfolios. What motivation did he identify?

(Choose one.)

  1. A new bull market makes stocks more promising.
  2. Higher stock valuations make bonds less attractive.
  3. Higher interest rates make bonds more rewarding.
  4. Lower inflation makes stocks less attractive.

(See answer below.)

5.

In the July 14 Money Talk Podcast, Tom Pappenfus talked about the mixed signals of slowing inflation alongside economic resilience. What did Tom identify as an encouraging result of those trends?

(Choose one.)

  1. Expectations the Federal Reserve would keep raising interest rates.
  2. Expectations the Federal Reserve would start lowering interest rates.
  3. Growing investor sentiment that the bull market has legs.
  4. Growing Congressional sentiment toward tax cuts.

(See answer below.)

6.

After the tech-heavy Nasdaq outperformed other leading stock indexes through the first half of 2023, the Dow Jones Industrial Average has been advancing. In the July 21 Money Talk Podcast, what lesson did Steve Giles say investors should take from the broadening market rally?

(Choose one.)

  1. If you’re not timing the market, you’re just marking time.
  2. Diversification saves you from chasing winners.
  3. The best bet is always whatever just got bested.
  4. Sell in May, go away.

(See answer below.)

Answers

1.

c. Confidence from rising stock and home prices

Learn more
Wealth effects: Spend, invest, retire, by Joel Dresang
Halfway through 2023, outlook improving, by Kyle Tetting
Retirement: Thinking about spending, by Joel Dresang
Economic SnapChart: Consumers, by Adam Baley

2.

b. Losing sight of long-term investment strategies

Learn more
Investor upsides as interest rates rise, a Money Talk Video with Kendall Bauer and Kyle Tetting
Investor risks of action/inaction, by Kyle Tetting
Stocks: Long-term, consistent returns, a Money Talk Video with Dave Sandstrom

3.

a. It encourages consumer spending.

Learn more
Economy keeps counting on consumers, by Joel Dresang
Economic SnapChart: Consumers, by Adam Baley
Investor risks of action/inaction, by Kyle Tetting

4.

c. Higher interest rates make bonds more rewarding.

Learn more
Investor upsides as interest rates rise, a Money Talk Video with Kendall Bauer and Kyle Tetting
When Should I …rebalance my portfolio? by Art Rothschild
When and why to rebalance, a Money Talk Video with Brian Kilb
Seeing how your equities are balanced, a Money Talk Video with Kyle Tetting

5.

c. Growing investor sentiment that the bull market has legs.

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

6.

b. Diversification saves you from chasing winners.

Learn more
Why investments outperform their investors, a Money Talk Video with Kyle Tetting
Selections important to your investments, a Money Talk Video with Kyle Tetting
Wondering where your portfolio fits, by Kyle Tetting

PREVIOUS MONEY TALK QUIZZES
(initially posted July 28, 2023)

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