Claim OwnershipMaking Money Minute with Ron Hiebert
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Podcast by Ron Hiebert
1433 Episodes
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Making Money Minute with Ron Hiebert - Hope Isn’t A Strategy
Investors as a rule are an optimistic bunch. Most will be able to tell you what they will do if a stock they purchased goes up. They generally have a target price, and plans for the money, once it reaches that goal. Yet very few ever think about the downside. What if the investment doesn’t work out? Why might that happen? What actions need to be taken if the investment does go south? Sell? Buy more? If so - at what price? When a stock tanks, most investors just hang on for the ride, hope things change and it goes back up. Unfortunately, hope isn’t a strategy.
Making Money Minute with Ron Hiebert - The Big Money Is Betting On Trump
People who don’t like Trump or his economic policies, have been avoiding US markets because they believe his initiatives will lead to disaster. They shake their heads in disbelief as stocks continue to go up and up, and they get left further and further behind. People who think Trump is a disaster, might end up being right, but the big institutional money has a different opinion. They have been voting with their wallets in the belief that many of Trump’s initiatives will have a positive impact on the economy and the markets. So far they have been right.
Making Money Minute with Ron Hiebert - Central Banks Are Buying Gold
The US Federal Government deficit for 2025 is going to exceed 2 trillion dollars. The third highest in history. American fiscal irresponsibility and aggressive trade policies, punishing friend and foe alike, have motivated foreign countries to slowly shift assets. Central banks used to hold huge amounts of US Government bonds, because they were safe, liquid and paid dependable interest. In the last 6 years that has changed. Foreign central banks now hold more gold on their balance sheets than they do US government bonds. It is a trend that will continue - and likely accelerate.
Making Money Minute with Ron Hiebert - EV Depreciation
Anyone who has ever wanted a high end, all electric, European super car, but was put off by the six figure price tag on the showroom floor - just got a break. On auction sites like supercarblondie, where high end iron is bought and sold, the bargains are amazing. Two year old, low mileage, EV’s priced at $150,000 plus when new, are now being firesaled at discounts of 50% to 60%. The first owners of these cars have taken a huge financial haircut, but that has made them affordable luxury, for lots of others.
Making Money Minute with Ron Hiebert - Detecting A Scam
Many scams have telltale emotional signs you need to be on the lookout for. If they make you afraid. Like an email from the CRA threatening prosecution because you supposedly didn’t pay your taxes. If they appeal to your vanity. Like texts from scammers who pose as headhunters, saying they were referred to you with a dream job offer. If they appeal to your greed. Stock promotions and other Ponzi schemes fall into this category. Scammers like to push the buttons of fear, vanity and greed. If you feel emotionally manipulated - it’s often a scam.
Making Money Minute with Ron Hiebert - Economic Spin
Spin is a marketing term. Spin takes events, or data, and adjusts them to put you, or your organization, in the best possible light. Politicians, companies, even environmental groups use it often and effectively. An example is Electric Vehicles. The spin says that global adoption of EV’s means that peak oil usage is near. The facts without the spin look much different. There are 50 million electric cars operating globally. Their use saves about 1.3 million barrels of oil a day. Global oil consumption exceeds 100 million barrels a day, making their chest thumping, a laugh at best.
Making Money Minute with Ron Hiebert - Gold’s Future Price
Investors have been discouraged from buying gold because it is trading at all time highs. However price is only one valuation metric. Historically the value of gold has at times tracked the increase in the amount of money governments print and the inflation it creates. If this metric is used, the price of the yellow metal is still historically cheap. The more money created out of thin air, the higher gold prices can go. Using this methodology, the metals full value could be as high as $9700 US per ounce, giving it plenty of room to run.
Making Money Minute with Ron Hiebert - Making VS. Keeping Money
Making big dollars and keeping the money you made are two very different skill sets. Professional athletes are often great earners but pathetic savers. Nearly four out of 5 retired NFL football players are bankrupt or under financial stress. In the National Basketball Association, 2 out of every three retired players are broke after 5 years. Earning huge amounts of money, tricks you into thinking that the windfall will never end, and there is no need to learn good savings and investment skills. Unfortunately for most, the dream has a sad ending.
Making Money Minute with Ron Hiebert - The Tax Benefits of Rebalancing
Rebalancing is a technique where you adjust the asset weightings in a portfolio - usually on an annual basis. It is beneficial for two reasons. Rebalancing gets you to sell asset classes that have outperformed and add to those that haven’t done as well - in other words sell high and buy low. It also allows you to tax harvest by selling some of the losers in the portfolio. Writing the winners off against these losers has proved beneficial from a performance perspective. Periodic tax harvesting lowers taxes, and has been shown over the long term, to add between 3/4’s of a percent to a percent and a half to annual returns.
Making Money Minute with Ron Hiebert - elling Is Hard To Do
People are not very good at buying stocks, but they are even worse at selling - and that includes the pros. A study between 2000 and 2016, looked at 4.4 million trades done by professional asset managers. They specifically focused on the sell side of these transactions. Whenever the professional manager would sell a security in the portfolio, a computer would hypothetically select a random, different, security and sell it. Astonishingly, the computers random selections, outperformed the sales of professional managers by quite a margin. Buying is hard. Selling is even harder.
1Making Money Minute with Ron Hiebert - Long Term Market Cycles
Investors need to understand that stock markets move in extended cycles. Long term bull markets tend to last 15 - 20 years. Long term bear markets run 8 to 15 years. The bull market we are currently in, started in 2013 and is still going. The previous bear market, started in 2000 and ran for 13 years. Within these long bull and bear cycles, markets typically experience shorter term ups and downs, which investors try to trade profitably. However, most investors make money playing the long term trends and don’t do so well trying to catch the shorter term movements.
Making Money Minute with Ron Hiebert - Markets Historically Expensive
Two things make stock markets go up. Rising earnings are one. Historically companies have been able to increase their profits by about 6% per year over the long term. The second is investor willingness to pay higher prices to own shares. This second one is the biggest and most volatile factor. Markets are considered reasonable when share prices on average trade at 15 times annual profits and cheap when they are around 12 times. Currently markets are trading at more than twice bargain levels, because investors are feeling bullish. When prices get too far ahead of earnings growth, it is time to be cautious.
Making Money Minute with Ron Hiebert - The World Is Complex
Beware of politicians with simple solutions to complex economic problems. Take for example the last bout of inflation we had during Covid, when that number went up to 9.5% annually. Political solutions were simple, and fit easily into 30 second sound bits. Perfect for news spots or commercials. But real world problems are seldom that easy to solve. Experts identified at least 15 different causes for that spurt of inflation. People, who offer simple fixes for complex problems, either don’t what they are talking about out, or worse, know they are wrong, but continue to spout nonsense in hopes of attracting votes.
Making Money Minute with Ron Hiebert - Elon Musk
Elon Musk has an amazing collection of assets: Tesla - a maker of electric cars, Spacex - the rocket company, Neuralink - which connects the human brain to computers, X - formerly called Twitter, The Boring Company - which digs tunnels and XAI - the arm that develops artificial intelligence and robots. As of last week, the total value of all these companies pushed Musk’s net worth above 1/2 a trillion dollars. For perspective, that number is larger than all the goods and services produced by either a Denmark or Norway last year.
Making Money Minute with Ron Hiebert - Bubble Warnings
Bubbles form when a stock sector reaches valuations far exceeding anything these companies can be expected to profitably achieve in the real world. When it finally dawns on investors that hype grossly exceeds reality, they dump their holdings and the bubble pops. Research on 10 different stock bubbles since 1900 shows their average gain was 244%. The current stocks that look frothy, are a group of tech names called the Magnificent 7. They have climbed 225% in the last 2 1/2 years. Mag 7 gains don’t necessarily mean the party is over, but yellow caution flags are definitely out.
Making Money Minute with Ron Hiebert - Sports Memorabilia
If you buy right, sports memorabilia can be very profitable. A Mickey Mantle baseball card, sold three years ago for 12.5 million US. Last year, the jersey Babe Ruth wore in the third game of the 1932 World Series went for twenty four million. Recently, Kevin O’Leary, of Shark Tank fame, as part of an investment group, bought an autographed Kobe Bryant/Michael Jordan basketball card for 12.9 million US. The key, is to find something very rare, or someone, before they become really famous.
Making Money Minute with Ron Hiebert - A Market That Won’t Die
This market reminds me of the Russian Monk - Rasputin. In 1914, he was stabbed but survived. Two years later, he was fed cakes laced with cyanide but survived, then given poisoned wine but survived, then shot and survived, and finally shot again and thrown in a frozen river. At that point, he finally drowned. Just like Rasputin, this current bull market has many lives. Tariffs, slowing job growth, consumer weakness, international turmoil and falling real estate values, just can’t kill it off. This is leaving a lot of investors scratching their heads wondering what it will finally take to bring this Rasputin bull market to a close?
Making Money Minute with Ron Hiebert - AI Hype
The tech bros anticipate spending 3 to 4 trillion dollars building out artificial intelligence infrastructure over the next decade. This total is larger than the combined economic output of Canada and Brazil. The problem is no one is able to tell investors how this will translate into profits for companies outside the tech universe. A disturbing MIT study recently showed that only about 5% of companies deploying artificial intelligence were able to squeeze any profits out of its use. Right now the hype far outweighs the sobering reality. Investors need to be cautious.
Making Money Minute with Ron Hiebert - Chinese Cars & Tariffs
The reason we put high tariffs on Chinese cars, is they would totally crush our domestic industry if we let them in. For example, BYD, China’s largest vehicle maker, released a car a couple of months ago that cost roughly $19,000 Canadian dollars. This gas electric hybrid is so efficient that it will run 2000 kilometres on a tank of fuel. This makes it the most efficient vehicle in its class by 50%. We have nothing in the west that is comparable on price or efficiency. The only way for us to compete is either with better, cheaper products, or using tariffs to keep them out. It looks like tariffs win.
Making Money Minute with Ron Hiebert - Economic Growth & Stock Markets
Stock investors often look at countries economic growth rates as a signal of where to invest. Obviously the higher the growth rate, the more likely stock market returns will move right along with it. But this isn’t always the case. China has had the highest economic growth of any major economy for decades, but its stock markets have gone no where. The US on the other hand has had the world’s most dynamic stock markets over the last ten years. Yet during this time, growth has been slowing. Stock market performance is complex and can’t be reduced to a simple formula.
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