Money Talk Quiz, June 2024

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.

1.

In the May 3 Money Talk Podcast, John Sandstrom talked about financial markets sometimes interpreting good news on the economy as bad news for stocks and sometimes seeing bad news as good news. What did John suggest as a guard against such short-term volatility?

(Choose one.)

  1. Divesting from stocks
  2. Committing to a long-term plan
  3. Buying gold
  4. Turning off the news

(See answer below.)

2.

Also in the May 3 Money Talk Podcast, Art Rothschild mentioned the adage, “Sell in May and go away.” As Art explained, which other saying best describes why that’s not a prudent strategy?

(Choose one.)

  1. It’s time in the market, not market timing.
  2. It’s all about earnings and interest rates.
  3. Markets climb a wall of worry.
  4. You don’t always get what you want.

(See answer below.)

3.

In the May 10 Money Talk Podcast, Dave Sandstrom talked about relatively high valuations for stocks and why that may be and why that’s not necessarily bad. In the context of that discussion, what does P/E mean?

(Choose one.)

  1. Profits divided by expenses
  2. Profits divided by earnings
  3. Price divided by earnings
  4. Price divided by expenses

(See answer below.)

4.

In the May 10 Money Talk Podcast, Mike Hoelzl explained how non-economic news was negatively affecting consumer sentiment and investor perceptions. Which of the following WAS NOT an example Mike gave of the economy’s relative strength?

(Choose one.)

  1. Unemployment rate below 4%
  2. Wages at all-time highs
  3. Forecasts for rising GDP
  4. Declining interest rates

(See answer below.)

5.

In the May 17 Money Talk Podcast, Tom Pappenfus talked about recent trends affecting the returns for stocks of utility companies. Which one of the following is a factor that Tom mentioned as part of stronger interest in utilities?

(Choose one.)

  1. Immigration
  2. Artificial intelligence
  3. Demographics
  4. Politics

(See answer below.)

6.

Kendall Bauer talked about a trading surge in meme stocks during the May 17 Money Talk Podcast. Which one of the following was a takeaway that Kendall offered?

(Choose one.)

  1. Befriend the trend.
  2. Follow the bleeder.
  3. Stick with fundamentals.
  4. Speculate. Don’t hesitate.

(See answer below.)

7.

Adam Baley noted in the May 24 Money Talk Podcast that the market capitalization of one Nvidia Corp. had surpassed the value of the entire German stock market. Which of the following was a takeaway Adam had from the news?

(Choose one.)

  1. It may be time to abandon the U.S. high-tech sector.
  2. There may be some relative bargains among non-U.S. stocks.
  3. Nvidia should look for German acquisitions.
  4. It may be time to abandon German bonds.

(See answer below.)

Answers

1.

b. Committing to a long-term plan

Learn more
Stocks: Long-term, consistent returns, a Money Talk Video with Dave Sandstrom
Balance beats timing (and uncertainty), by Kyle Tetting
Why investments outperform their investorsa Money Talk Video with Kyle Tetting
Good things come to investors who wait, by Joel Dresang

2.

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

Learn more
Don’t Sell in May; Don’t Go Away, a Money Talk Video with Marc Amateis
Staying the course is not staying still, by Kyle Tetting
For What It’s Worth: Sell in May

3.

b. Price divided by earnings

Learn more
Stock valuations: Time to buy or sell? a Money Talk Video with Dave Sandstrom
Valuing investments: Price-earnings ratio, a Money Talk Video with Dave Sandstrom
Valuing the market, by Art Rothschild and Joel Dresang
5 things to do when stocks aren’t cheap, a Money Talk Video with Marc Amateis

4.

d. Declining interest rates

Learn more
Making financial sense of “breaking news,” a Money Talk Video with Art Rothschild
Look (and scrutinize) before you leap, by Joel Dresang
Crash test dummies, by Joel Dresang

5.

b. Artificial intelligence

Learn more
The role of stock sectors in investments, a Money Talk Video with Kyle Tetting
AI vs. dot-com: What Investors Should Know, by Kyle Tetting
Overview of Artificial Intelligence Technology, from the Financial Industry Regulatory Authority

6.

c. Stick with fundamentals.

Learn more
Social Media and Investment Fraud – Investor Alert, from Investor.gov
Say “NO GO” to FOMO, from Investor.gov
Wondering where your portfolio fits, by Kyle Tetting
Selections important to your investments, a Money Talk Video with Kyle Tetting

7

b. There may be some relative bargains among non-U.S. stocks.

Learn more
Over there: Investing in a global economy, a Money Talk Video with Kyle Tetting
Investing away from home, by Kyle Tetting
International investing, from the Securities and Exchange Commission

(initially posted May 31, 2024)