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

1.

In the July 1 Money Talk Podcast, Chris Evers suggested one word to summarize the investment markets for the first half of 2022. What word did he choose?

(Choose one.)

1. Recession
2. Inflation
3. Bear
4. Fed

(See correct answer below.)

2.

Steve Giles used the term “regression to the mean” in a discussion about stock and bond performance during the July 1 Money Talk Podcast. What was the context for his reference?

(Choose one.)

1. Often, inflation tends to level off after running hot for a couple of quarters.
2. The Federal Reserve means to lower areas of inflation where it’s high while raising it where it’s weak.
3. By historical averages, stocks over-performed and bonds underperformed in the past decade, suggesting the trends are due to reverse.
4. The Efficient Frontier shows the value of balancing investment assets to optimize risk and return.

(See correct answer below.)

3.

The U.S. dollar has strengthened against other major currencies, which tends to devalue revenue that U.S.-based companies generate overseas, Paige Radke explained in the July 8 Money Talk Podcast. What consequence of the strong dollar did she mention for companies not based in the U.S.?

(Choose one.)

1. It could hurt their sales in U.S. markets.
2. It could make it harder for them to pay back dollar-denominated debt.
3. It could weaken their attraction to U.S. tourists.
4. It could ease their borrowing efforts with U.S. banks.

(See correct answer below.)

4.

The Federal Reserve has been increasing short-term interest rates to try to dampen 40-year high inflation rates. In the July 15 Money Talk Podcast, Art Rothschild cited one sign that the Fed might already be finding some success. What was it?

(Choose one.)

1. According to surveys, consumers were lowering their expectations for future inflation.
2. The prices of gasoline, eggs and used cars were declining.
3. The S&P 500 was trading above its mid-June low.
4. Indexes for both consumer confidence and consumer sentiment were rebounding to pre-pandemic levels.

(See correct answer below.)

Answers

1.

b. Inflation

Learn more
Stocks offset fears of inflation over time, by Joel Dresang
Inflation: Nuances matter for investors, by Kyle Tetting
Keeping balance in unnerving times, by Bob Landaas
Stocks: Long-term, consistent returns, a Money Talk Video with Dave Sandstrom

2.

c. By historical averages, stocks over-performed and bonds underperformed in the past decade, suggesting the trends are due to reverse.

Learn more
Math hints on bonds, balance, recession, by Kyle Tetting
When Should I …rebalance my portfolio? by Art Rothschild
How bonds fared as Fed has raised rates, a 2016 Money Talk Video with Kyle Tetting

3.

b. It could make it harder for them to pay back dollar-denominated debt.

Learn more
Economic SnapChart: Strong Dollar, by Paige Radke
Over there: Investing in a global economy, a Money Talk Video with Kyle Tetting
International Investing, from the Securities and Exchange Commission

4.

a. According to surveys, consumers were lowering their expectations for future inflation.

Learn more
Finding direction in the fundamentals, by Kyle Tetting
Fed needs tools, time, incremental tuning, by Kyle Tetting
Economy keeps counting on consumers, by Joel Dresang

PREVIOUS MONEY TALK QUIZZES

(initially posted July 27, 2022)

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