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 Sept. 1 Money Talk Podcast, Kendall Bauer explained various signs suggesting that consumers might be starting to tighten their spending. How important is consumer spending to the overall economy, based on its proportion to U.S. gross domestic product?

(Choose one.)

1. 68.3% of GDP
2. 57.8%
3. 76.2%
4. 49.7%

(See answer below.)

2.

In the Sept. 8 Money Talk Podcast, Art Rothschild talked about the weakening economy in China and what it means for balanced investors. According to the Federal Reserve Bank of Dallas, which country recently replaced China as the No. 1 trading partner of the U.S.?

(Choose one.)

1. Canada
2. Mexico
3. Germany
4. India

(See answer below.)

3.

In the Sept. 8 Money Talk Podcast, Mike Hoelzl cautioned investors not to imply too much from stock index valuations. What explanation did Mike offer?

(Choose one.)

1. A handful of stocks have thrown off the average.
2. A new measure is replacing the traditional price/earnings ratio.
3. Valuations typically get overinflated around Labor Day.
4. Valuations will drift lower again in 2024 because of the U.S. presidential election

(See answer below.)

4.

In the Sept. 15 Money Talk Podcast, Steve Giles explained that initial public stock offerings (IPOs) generally are too risky for long-term investors. But he mentioned a safer way that investors sometimes participate in IPOs. Which of the following did he talk about?

(Choose one.)

1. When they invest in an IPO through an IRA
2. When they invest in an IPO through dollar-cost averaging
3. When they invest in an IPO through a brokerage account
4. When their mutual fund manager invests in an IPO

(See answer below.)

5.

In the Sept. 22 Money Talk Podcast, Tom Pappenfus addressed a federal government shutdown that could be triggered by the failure of Congress to pass a budget. According to the nonpartisan Committee for a Responsible Federal Budget, about 20 such shutdowns have occurred since 1976. How did Tom describe the financial markets’ reaction to past shutdowns?

(Choose one.)

1. They panicked.
2. They shrugged.
3. They celebrated.
4. They capitulated.

(See answer below.)

6.

In the Sept. 22 Money Talk Podcast, Adam Baley talked about the range of diversity in the latest dot plot from the Federal Reserve’s policy makers. As Adam explained, what does the dot plot show?

(Choose one.)

1. Targets for inflation rate in six months and 12 months
2. Expectations for interest rates at year-end and beyond
3. Predictions for unemployment rate at year-end
4. Forecasts for federal debt level in each of next 10 years

(See answer below.)

Answers

1.

a. 68.3%

Learn more
Introduction to U.S. economy: Consumer spending, from the Congressional Research Service
Consumer spending and its impact on the economy, from The Balance
Investor risks of action/inaction, by Kyle Tetting
Economy keeps counting on consumers, by Joel Dresang

2.

b. Mexico

Learn more
Investing away from home, by Kyle Tetting
Over there: Investing in a global economy, a Money Talk Video with Kyle Tetting
Global exposure via large U.S. companies, Money Talk Video with Marc Amateis
International investing includes risks, a Money Talk Video with Brian Kilb
International Investing, from the Securities and Exchange Commission

3.

a. A handful of stocks have thrown off the average.

Learn more
Broader views of market movements, a Money Talk Video with Dave Sandstrom
Concentrated gains, broad participation, by Kyle Tetting

4.

d. When their mutual fund manager invests in an IPO

Learn more
When Should I …consider actively managed funds?
Mutual Funds and ETFs: A Guide for Investors, from the Securities and Exchange Commission
“Active vs. Passive Management” in Mutual funds, from the Financial Industry Regulatory Authority
A place for active management, a Money Talk Video with Marc Amateis
Talking Money: Active management, a Money Talk Video with Kyle Tetting

5.

b. They shrugged.

Learn more
Brinkmanship challenges investor resolve, by Kyle Tetting
Separating politics from portfolios, by Joel Dresang
Making financial sense of “breaking news,” a Money Talk Video with Art Rothschild
Focus on fundamentals to face volatility, a Money Talk Video with Steve Giles

6.

b. Expectations for interest rates at year-end and beyond

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
How bonds fared as Fed has raised rates, a Money Talk Video with Kyle Tetting

PREVIOUS MONEY TALK QUIZZES

(initially posted Oct. 5, 2023)

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