Each week in the Money Talk Podcast, Landaas & Company advisors offer insights for long-term investors. Try to answer the following questions, based on some of those conversations.

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1.

For months, large investors have been anxious about how soon and how much the Federal Reserve might cut interest rates. In the March 1 Money Talk Podcast, Mike Hoelzl noted that the Fed had been slow to start raising rates when inflation first took off in 2021. How did Mike suggest that initial reluctance might affect the timing of rate cuts?

(Choose one.)

1. The Fed would act sooner.
2. The Fed would act later.
3. The Fed would not act.
4. The Fed would raise rates instead.

(See answer below.)

2.

In the March 1 Money Talk Podcast, Steve Giles noted recent record highs for major stock indexes and suggested investors do which of the following in response?

(Choose one.)

1. Nothing.
2. Abandon stocks.
3. Buy more stocks.
4. Review their portfolio balance.

(See answer below.)

3.

“Smart people can make foolish decisions when they let emotions get involved.” Adam Baley said those words on the March 8 Money Talk Podcast in a discussion about which of the following?

(Choose one.)

1. Romance scams
2. Stock sell-offs
3. Cryptocurrency
4. Ice fishing

(See answer below.)

4.

Art Rothschild talked about a “liquidity-generated” market on the March 8 Money Talk Podcast, suggesting which one of the following?

(Choose one.)

1. Investors flush with cash will fuel stock rallies.
2. Investors will liquidate stock positions to buy more bonds.
3. Investors will liquidate bonds to buy more stocks.
4. Investors will liquidate stocks to generate more cash.

(See answer below.)

5.

In the March 15 Money Talk Podcast, Dave Sandstrom noted historically elevated stock valuations, which he said should…

(Choose one.)

1. compel investors to sell out of stocks
2. compel investors to buy more stocks
3. compel investors to stop buying stocks
4. not trigger swings in investors’ strategies

(See answer below.)

6.

In the March 15 Money Talk Podcast, why did Kendall Bauer suggest the Fed’s “higher for longer” stance on interest rates wasn’t necessarily bad for investors?

(Choose one.)

1. Speculation on the Fed’s plans draws more investments.
2. Waiting for lower rates encourages market stability.
3. Higher rates help fixed-income investments.
4. The Fed is providing a distraction from politics.

(See answer below.)

Answers

1.

a. The Fed would act later.

Learn more
The Fed: What investors should know, a Money Talk Video with Dave Sandstrom
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.

d. Review their portfolio balance.

Learn more
When Should I …rebalance my portfolio? by Art Rothschild
The importance of balance, a Money Talk Video
Beginners Guide to Asset Allocation, Diversification and Rebalancing, from the U.S. Securities and Exchange Commission
Asset Allocation and Diversification, from the Financial Industry Regulatory Authority

3.

c. Cryptocurrency

Learn more.
Is Crypto Back? What to Know About Bitcoin’s Surge, from The New York Times
Thinking about buying the latest new cryptocurrency or token? from Investor.gov
Investment risk, explained, from the Financial Industry Regulatory Authority (FINRA)
Digital assets, from FINRA

4.

a. Investors flush with cash will fuel stock rallies.

Learn more
Stocks: Long-term, consistent returns, a Money Talk Video with Dave Sandstrom
Allocation to optimize reward vs. risk, a Money Talk Video with Dave Sandstrom and Bob Landaas
How cash fits into your portfolio, a Money Talk Video with Brian Kilb
Finding a better place for our cash, by Joel Dresang

5.

d. not trigger swings in investors’ strategies

Learn more
Stock valuations: Time to buy or sell? A Money Talk Video with Dave Sandstrom
The science of communicating balance, by Kyle Tetting
Why investments outperform their investors, a Money Talk Video with Kyle Tetting
Bad Timing Cost Investors One Fifth of Their Funds’ Returns, from Morningstar

6.

c. Higher rates help fixed-income investments.

Learn more
Investor upsides as interest rates rise, a Money Talk Video with Kendall Bauer and Kyle Tetting
The Fed: What investors should know, a Money Talk Video with Dave Sandstrom
Bonds also face investment risks, A Money Talk Video with Tom Pappenfus
Get the total picture of your investments, a Money Talk Video with Paige Radke

PREVIOUS MONEY TALK QUIZZES

(initially posted March 28, 2024)

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