Money Talk Quiz, July 2024

Review highlights from recent Money Talk Podcasts via a multiple-choice quiz.

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Money Talk Quiz, July 2024

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 those conversations.

1.

In the May 31 Money Talk Podcast, John Sandstrom talked about how financial markets have been itching for the Federal Reserve to lower interest rates. Based on recent remarks by some Fed governors, how did John characterize the Fed’s stance?

(Choose one.)

  1. Cautiously optimistic
  2. Data-dependent
  3. Higher-for-longer
  4. Wait-and-see with election

(See answer below.)

2.

Also in the May 31 Money Talk Podcast, Kendall Bauer talked about recency bias – a tendency to believe that the latest market trends will perpetuate. Noting that markets swing both down and up over time, what did Kendall advise as a fundamental rule to keep in mind?

(Choose one.)

  1. Don’t fight the Fed.
  2. Sell in May and go away.
  3. It’s all about earnings and interest rates.
  4. You can’t always get what you want.

(See answer below.)

3.

Art Rothschild noted in the June 7 Money Talk Podcast that both the European Central Bank and the Bank of Canada had lowered lending rates. As Art explained, why is the U.S. Federal Reserve still waiting to lower rates?

(Choose one.)

  1. It’s waiting until after the election.
  2. It’s seeking congressional approval.
  3. It’s still weighing economic data.
  4. It’s waiting until inflation dips to 2%.

(See answer below.)

4.

Even with major stock indexes continuing to set record highs, some investors get mixed signals on the financial markets. As Mike Hoelzl described in the June 7 Money Talk Podcast, what mistaken impression do many investors share?

(Choose one.)

  1. Their investment portfolios are down.
  2. We’re nearing a bull market.
  3. The recession is almost over.
  4. They need to quit stocks.

(See answer below.)

5.

In the June 14 Money Talk Podcast, what move did Dave Sandstrom suggest was a fool’s errand?

(Choose one.)

  1. Balancing assets in a portfolio.
  2. Rebalancing portfolio assets.
  3. Predicting Federal Reserve rate cuts.
  4. Finding a CD paying more than 2%.

(See answer below.)

6.

Also in the June 14 Money Talk Podcast, Tom Pappenfus explained how higher interest rates are benefiting savers and more conservative investors. Tom offered which one of the following as an illustration of some of the consequences?

(Choose one.)

  1. More people are retiring before their full retirement age.
  2. More bank takeovers have been announced.
  3. More retirees are refinancing their mortgages.
  4. More investment money has been flowing to cash, less to equities.

(See answer below.)

7.

In a discussion of the dominance of high-tech growth stocks, during the June 21 Money Talk Podcast, Adam Baley explained why investors should consider which of the following in their portfolios?

(Choose one.)

  1. More high-tech growth stocks
  2. More low-tech growth stocks
  3. Value-oriented dividend-paying stocks
  4. High-yield bonds

(See answer below.)

Answers

1.

b. Data-dependent

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2.

c. It’s all about earnings and interest rates.

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3.

c. It’s still weighing economic data.

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4.

a. Their investment portfolios are down.

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5.

c. Predicting Federal Reserve rate cuts.

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6.

d. More investment money has been flowing to cash, less to equities.

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7.

c. Value-oriented dividend-paying stocks

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    (initially posted June 27, 2024)