
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 the recent Money Talk conversations.
1.
John Sandstrom talked in the Oct. 3 Money Talk Podcast about speculation over whether rapid growth in artificial intelligence (AI) represents a tech bubble. How did John weigh in on the debate?
(Choose one.)
- AI is one of the biggest bubbles ever.
- AI cannot be classified as a bubble.
- It’s too late. AI is past the bubble stage.
- It’s too soon to tell.
(See answer below.)
2.
In the Oct. 3 Money Talk Podcast, Mike Hoelzl talked about modifications to some ETFs that could improve their tax efficiency as investment vehicles. What did Mike say ETF stands for?
(Choose one.)
- Efficient taxable fund.
- Economic trade fund.
- Exchange-traded fund.
- Effective trust finances.
(See answer below.)
3.
In the Oct. 10 Money Talk Podcast, Dave Sandstrom explained how balanced investment portfolios can limit short-term volatility. He noted that a 10% loss in return one year would need an 11% gain the next year to break even. That means the deeper the loss, the higher the required rebound. What term did Dave use to describe that math?
(Choose one.)
- Volatility drag.
- Reversion to the mean.
- Regression to the mean.
- Correlation.
(See answer below.)
4.
In discussing the value of balanced portfolios in the Oct. 10 Money Talk Podcast, Art Rothschild spoke of one component that is intended to provide stability. Which asset class was Art describing?
(Choose one.)
- Stocks.
- Bonds.
- Cash.
- Real estate.
(See answer below.)
5.
In discussing corporate earnings on the Oct. 17 Money Talk Podcast, Tom Pappenfus noted that just seven companies accounted for more than half of the returns for the S&P 500 index. According to Tom, what does a narrow distribution of earnings tend to suggest?
(Choose one.)
- Increasing momentum for stocks overall.
- Resilience for stocks overall.
- Slower momentum for stocks overall.
- Increasing potential for other stocks.
(See answer below.)
6.
In the Oct. 24 Money Talk Podcast, Adam Baley talked about recent stock market rallies despite the federal government shutdown and a lack of key economic indicators. What did Adam identify as a focus for market optimism?
(Choose one.)
- Speculation.
- Stable prices.
- Interest rates.
- Corporate earnings.
(See answer below.)
Answers
1.
d. It’s too soon to tell.
Learn more
- Innovations, long-run opportunities,by Kyle Tetting
- AI vs. dot-com: What investors should know,by Kyle Tetting
- Implementing data, cultivating outlook, by Kyle Tetting
- AI: A Fed Policymaker’s View, from the Federal Reserve Board
2.
c. Exchange-traded fund.
Learn more
- 5 things to know about ETFs, by Kendall Bauer
- Investing in ETFs, a Money Talk Video with Dave Sandstrom
- Exchange-Traded Funds (ETFs), from Investor.gov
- Mutual Fund vs ETF: What’s the Difference? from the Financial Industry Regulatory Authority
3.
a. Volatility drag.
Learn more
- Guide to Volatility Drag for Financial Advisors, from SmartAsset
- Don’t get caught In the “volatility drag,” from Capital Group
- Volatility: Stock market vs. your portfolio, a Money Talk Video with Kyle Tetting
- Focus on fundamentals to face volatility, a Money Talk Video with Steve Giles
4.
b. Bonds.
Learn more
- Bonds’ place in portfolios gets clearer, by Kyle Tetting
- Bonds also face investment risks, A Money Talk Video with Tom Pappenfus
- Investment balance: Find and keep, A Money Talk Video with Art Rothschild
- The importance of balance for investors, a Money Talk Video
5.
c. Slower momentum for stocks overall.
Learn more
- Broader views of market movements, a Money Talk Video with Dave Sandstrom
- Market Breadth: Definition, Indicators, and How Investors Use It,from Investopedia
- The Stock Market’s Breadth Is Improving. Why It Matters, from Barron’s (Aug. 2024)
6.
d. Corporate earnings
Learn more
- What to make of earnings season, a Money Talk Video with Dave Sandstrom
- What Is Earnings Season? from the Financial Industry Regulatory Authority
- How Stock Markets Work, from Investor.gov
- Stocks – FAQs, from Investor.gov