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 March 31 Money Talk Podcast, Kendall Bauer talked about what behavioral economists call “myopic loss aversion,” in which investors let short-term setbacks in their portfolio affect their long-term judgment. As Kendall explained, what key factor can heighten myopic loss aversion.
(Choose one.)
- How much an investor has in stocks
- How close an investor is to retirement
- How balanced an investor’s portfolio is
- How often an investor checks accounts
(See answer below.)
2.
In the March 31 Money Talk Podcast, Tom Pappenfus talked about shifts in the lead between growth stocks and value stocks. Which of the following is a lesson investors should learn from such shifts?
(Choose one.)
- Learn to anticipate lead changes
- Act fast in transitions to move everything from one style to the other
- Include a mix of both styles in your holdings
- Leave stocks for the stability of bonds during such transitions
(See answer below.)
3.
In the April 7 Money Talk Podcast, Adam Baley said three fundamental forces helped explain the performance of investments broadly since the autumn of 2022. Which factors did Adam highlight?
(Choose one.)
- Global supply chains, tensions with China, and inflation
- Corporate earnings, interest rates, and valuations
- Monetary policy, inflation, and exchange rates
- Trade deficit, the war in Ukraine, and unemployment
(See answer below.)
4.
After months of on-again-off-again pundit concerns about economic recession, Dave Sandstrom pointed to signs suggesting why a downturn didn’t seem imminent. In the April 7 Money Talk Podcast, which two indicators did Dave specify?
(Choose one.)
- Economic growth and a tight labor market
- Rising profit margins and low interest rates
- Residential construction growth and rising durable goods orders
- Improving global supply chains and surging consumer spending
(See answer below.)
5.
In the April 21 Money Talk Podcast, Art Rothschild explained that financial markets aren’t yet reflecting concerns about a looming deadline for raising the federal debt ceiling. What did he say investors should expect if the risk of government default draws near?
(Choose one.)
- Rising stock prices
- Increased demand for Treasurys
- Greater volatility
- Intervention by the Federal Reserve
(See answer below.)
Answers
1.
d. How often an investor checks accounts
Learn more
Counting steps vs. watching portfolio, by Joel Dresang
Why investments outperform their investors, a Money Talk Video with Kyle Tetting
The ups and downs of volatility, a Money Talk Video with Steve Giles
2.
c. Include a mix of both styles in your holdings
Learn more
The shifting values of growth and value, a Money Talk Video with Paige Radke
Value & Growth: Going Deeper, a Money Talk Video with Brian Kilb and Marc Amateis
The Importance of Balance for Investors, a Money Talk Video
3.
b. Corporate earnings, interest rates and valuations
Learn more
Over the river and through the Fed, by Kyle Tetting
Stock valuations: Time to buy or sell? a Money Talk Video with Dave Sandstrom
Valuations: What stocks are worth, a Money Talk Video with Brian Kilb
4.
a. Economic growth and a tight labor market
Learn more
Math hints on bonds, balance, recession, by Kyle Tetting
Recession’s not over till the NBER sings, by Joel Dresang
How to handle fears of recession, a Money Talk Video with Bob Landaas and Kyle Tetting
5.
c. Greater volatility
Learn more
Brinkmanship challenges investor resolve, by Kyle Tetting
Volatility: Stock market vs. your portfolio, a Money Talk Video with Kyle Tetting
For What It’s Worth: Volatility, by Joel Dresang
PREVIOUS MONEY TALK QUIZZES
(initially posted April 27, 2023)
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