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.

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1.

In the Nov. 3 Money Talk Podcast, Adam Baley explained that the Federal Reserve had been holding off changing interest rates as it waited to detect the delayed effects of 11 rate increases since 2022. How much of a lag did Adam say economists expect between the Fed’s action and noticeable results?

(Choose one.)

1. Five to 10 years
2. One to two years
3. Six to 12 months
4. Three to five years

(See answer below.)

2.

Also in the Nov. 3 Money Talk Podcast, Mike Hoelzl noted that many investors appeared anxious and even panicky about developments that they thought might affect their holdings. What did Mike say was the object of their impatience?

(Choose one.)

1. The U.S. presidential elections
2. The Fed’s pause on interest rate adjustments
3. The next report on consumer inflation
4. Holiday sales

(See answer below.)

3.

By the Nov. 10 Money Talk Podcast, stocks were recovering from a broad sell-off in August, September and October. The rebound prompted Tom Pappenfus to remind investors of which advisory adage?

(Choose one.)

1. Wall Street climbs a wall of worry.
2. It’s all about earnings and interest rates.
3. Sell in May and go away.
4. It’s time in the market, not timing the market.

(See answer below.)

4.

The sell-off discussed in the Nov. 10 Money Talk Podcast resulted in a 10% decline in the S&P 500 between the end of July and the end of October. Kendall Bauer explained that such “corrections” are regular and added which of the following observations?

(Choose one.)

1. They are healthy for long-term holdings.
2. They tend to follow dramatic interest rate increases.
3. They are harbingers of economic recession.
4. They tend to occur in the second half of the year.

(See answer below.)

5.

In the Nov. 17 Money Talk Podcast, Steve Giles explained how Wall Street was interpreting bad news on the economy as good news for stocks. What good news did he say could be found among scattered signs of economic weakness?

(Choose one.)

1. A recession finally may be nearing.
2. The Fed might stop raising rates.
3. The Fed might do more to fight inflation.
4. A recession may be avoided.

(See answer below.)

Answers

1.

b. One to two years

Learn more
Fed Functions: Conducting Monetary Policy, a video from the Federal Reserve
Over the river and through the Fed, by Kyle Tetting
Fed needs tools, time, incremental tuning, by Kyle Tetting

2.

b. The Fed’s pause on interest rate adjustments

Learn more
The Fed: What investors should know, a Money Talk Video with Dave Sandstrom
Responding to the calm of summer, by Kyle Tetting
Making financial sense of “breaking news,” a Money Talk Video with Art Rothschild

3.

d. It’s time in the market, not timing the market.

Learn more
Balance beats timing (and uncertainty), by Kyle Tetting
Why investments outperform their investors, a Money Talk Video with Kyle Tetting
5 ways rebalancing calms anxious investors, a Money Talk Video with Marc Amateis

4.

a. They are healthy for long-term holdings.

Learn more
Investors: Prepare for stock corrections, a Money Talk Video with Kyle Tetting and Paige Radtke
Retirees: How to handle stock sell-offs, a Money Talk Video with Dave Sandstrom
Corrections: A normal part of investing, a Money Talk Video with Marc Amateis

5.

b. The Fed might stop raising rates.

Learn more
Summary of Economic Projections, from the Federal Reserve
The Fed: What investors should know, a Money Talk Video with Dave Sandstrom
Fed Functions: Conducting Monetary Policy, a video from the Federal Reserve

PREVIOUS MONEY TALK QUIZZES

(initially posted Nov. 30, 2023)

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