2021 Investment Outlook Seminar Quiz
Click here for the answers – AFTER you take the quiz (honor system).
As a supplement to the 2021 Investment Outlook Seminar, the annual seminar quiz allows viewers to test their knowledge of the material covered in the video featuring investment advisors Bob Landaas, Kyle Tetting, Dave Sandstrom, Paige Radke, Chris Evers, Kendall Bauer and Mike Hoelzl.
In talking about signs of higher inflation earlier in 2021 and the belief that it’s only temporary, Bob Landaas advised investors to keep their eye on “the canary in the coal mine.” To what was he referring?
- The yield on the 10-year Treasury note
- The Personal Consumption Expenditure Index
- The forward price/earnings ratio
- The Consumer Price Index
Bob and Kyle talked about the importance of productivity in continued economic growth. Output per hour worked stagnated in the last couple of decades following robust increases in the 1950s and ‘60s.
True or False? The pandemic-induced recession of 2020 appears to have further hindered productivity.
Bob noted that international stocks have been lagging the performance of U.S. companies for years. Which of the following IS NOT among the points he and Kyle made in their discussion?
- Generally, international stock funds are better suited for long-term investors.
- Although they could be low for a reason, international valuations have been comparatively attractive.
- Where a company does business tends to be more important than where it’s located.
- International stocks have no place in most American investors’ portfolios.
As at every Investment Outlook Seminar, Bob and Kyle discussed the Efficient Frontier, which is essential to customizing investors’ asset allocations. Which of the following best summarizes the concept?
- To maximize returns, investors must minimize risks.
- To minimize risks, investors must sacrifice returns.
- The mix of investments can vary depending on an individual’s need for returns and tolerance for risk.
- Investors should go all-in on stocks when they’re younger and all-in on bonds when they retire.
Dave Sandstrom spoke with Kyle about the positive developments of greater market breadth in recent stock rallies. What did he mean by market breadth?
- The volume of shares traded
- The location of investors involved
- The number of companies participating
- The consistency of sales per hour
Paige Radke spoke with Kyle about how common it is for stocks to experience corrections in which indexes such as the S&P 500 decline by 10% or more from their previous high.
Which of the following WAS NOT among the actions Paige said investors might consider when corrections occur?
- Rebalance your portfolio if the mix of assets tilts too far from what you and your advisor planned.
- Minimize effects of the correction by fleeing from stocks ASAP.
- Talk with your advisor about possibly selling off declined investments to offset taxes on gains from other sales.
- Watch for opportunities to strategically add to your allocations while prices are lower.
Chris Evers spoke with Kyle about ways to measure potential risk in investments. Two technical tools are beta, which compares an investment’s volatility to a broader index, and standard deviation, which measures how much an investment’s returns vary.
According to Chris, what’s a major drawback of those tools?
- They’re based on past history.
- They’re available only to financial professionals.
- They change too frequently.
- The never get updated.
Kyle talked with Kendall Bauer about historically low interest rates and how investors have been tempted to reach for higher yield for the bond side of their portfolios through bonds of longer duration and lower credit quality.
Which of the following WAS NOT a point made by Kendall and Kyle?
- The higher yields haven’t been enough to offset the greater risks.
- The bond side of the portfolio isn’t the place to take risks.
- Eventually rising rates could put the higher-yield bonds at greater risk.
- Higher-yield bonds will get less risky as interest rates rise.
Kendall also noted that investors need to consider more than just yield. He said there’s a second component to total return that can often be overlooked.
To what was Kendall referring?
- price appreciation
- tax benefits
- fee income
Mike Hoelzl spoke with Kyle about investors being clear and up to date about the individuals they name as beneficiaries to their accounts. He noted that investors should specify individuals as beneficiaries on retirement accounts, such as IRAs and 401(k)s.
What reason did Mike give for the importance of naming beneficiaries?
- It complies with federal laws.
- It simplifies paperwork for survivors.
- It helps make sure money is disbursed as the investor wishes.
- It’s just a thoughtful gesture.
(initially posted October 1, 2021)
Landaas newsletter subscribers return to the newsletter via e-mail.