Through articles on the Money Talk page and discussions during the weekly Money Talk Podcast, Landaas & Company advisors offer insights into the ever-changing financial markets. They help long-term investors make sense of what is going on and what it means to their portfolios. To see if you’re paying attention, try to provide the context for a sample of what advisors have talked about recently.

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1.

In the Dec. 10 Money Talk Podcast, Bob Landaas noted the divergence between the Dow Jones Industrial Average and the S&P 500 index. For 2021, the Dow rose 20.9% and the S&P 28.7%, both including dividends. What reasoning did Bob and Kyle Tetting give for the difference?

1. Investors seem to be shifting toward benchmarking to broader-based, technology-heavy companies as opposed to more traditional blue-chip industrials.
2. The Dow has been losing favor as it has changed which companies it includes, for instance, replacing such stalwarts as Exxon-Mobil with relative upstarts like Salesforce.
3. Standard & Poor’s has done a better job of marketing its indexes.
4. There appears to be a years-long trend of automated trading pushing more buying and selling toward stocks included in the S&P 500.

(See correct answer below.)

2.

In the Dec. 31 Money Talk Podcast, Paige Radke said she is looking forward to market volatility in 2022. Why did she say that?

1. She said she enjoys the challenges involved when stock valuations vary wildly from one day to the next.
2. She said big swings in prices remind investors to allocate a portion of their holdings in fixed-income investments.
3. She said volatility can create opportunities for investors with balanced portfolios and mutual funds with active managers.
4. She said she was looking for a little more excitement from the market.

(See correct answer below.)

3.

“Even if you know what’s going on, you don’t always know what the results are going to be in the market.”

Brian Kilb made that remark in the Dec. 24 Money Talk Podcast. To what was he referring?

1. The divergence in performance between the Dow Jones Industrial Average and the S&P 500.
2. The challenge of considering buying stocks through initial public offerings.
3. Why it’s so hard for stock pickers to time the market.
4. How well stocks have performed in the face of what otherwise would be considered head winds such as high valuations and expectations for rising interest rates.

(See correct answer below.)

4.

In the Dec. 10 Money Talk Podcast, Kyle Tetting drew a lesson from the brief stock sell-off just after Thanksgiving. What major point did he make?

1. In general, beware of volatile trading around national holidays.
2. Investors benefit from having balanced portfolios that allow them to sit tight and patiently wait out downturns.
3. Investors can usually expect big swings in market indexes between Halloween and New Year’s.
4. Retirees should consider scheduling required minimum distributions earlier in the year to avoid year-end holiday trading.

(See correct answer below.)

Answers

1.

a. Investors seem to be shifting toward benchmarking to broader-based, technology-heavy companies as opposed to more traditional blue-chip industrials.

Learn more
Broader views of market movements, a Money Talk Video with Dave Sandstrom and Kyle Tetting
How to benchmark investments, a Money Talk Video with Chris Evers
How automated trading riles stock volatility, a Money Talk Video with Paige Radke

2.

c. She said volatility can create opportunities for investors with balanced portfolios and mutual funds with active managers.

Learn more
Volatility: Stock market vs. your portfolio, a Money Talk Video with Kyle Tetting
When should I consider actively managed funds, by Mike Hoelzl
The case for active funds amid volatility, a Money Talk Video with Kyle Tetting

3.

d. How well stocks have performed in the face of what otherwise would be considered head winds such as high valuations and expectations for rising interest rates.

Learn more
Valuations: What stocks are worth, a Money Talk Video with Brian Kilb
Allocation to optimize reward vs. risk, a Money Talk Video with Dave Sandstrom
Earnings yield: Valuing stocks vs. bonds, , a Money Talk Video with Kyle Tetting

4.

b. Investors benefit from having balanced portfolios that allow them to sit tight and patiently wait out downturns.

Learn more
What omicron means for your investments, by Kyle Tetting
5 ways rebalancing calms anxious investors, a Money Talk Video with Marc Amateis
When Should I …rebalance my portfolio? by Art Rothschild

Previous Money Talk Quizzes
Money Talk Quiz, November 2021
Money Talk Quiz, September 2021
Money Talk Quiz, August 2021
Money Talk Quiz, July 2021
Money Talk Quiz, June 2021
Money Talk Quiz, May 2021
Money Talk Quiz, April 2021

(initially posted January 6, 2022)

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