Claim OwnershipMaking Money Minute with Ron Hiebert
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Podcast by Ron Hiebert
1419 Episodes
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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.
Making Money Minute with Ron Hiebert - Mining Stock Debt
Among the most important considerations when investing in mining companies, are for them to be well financed and have strong balance sheets. Running out of cash, often results in selling shares at fire sale prices, diluting existing shareholder interests. If researching a junior mining company, it is safest if they have a major partner who has agreed to pay for drilling or other development work, in exchange for a percentage interest in the property. Because commodities go through extended periods of low prices, mining stocks need strong balance sheets and low debt to survive.
Making Money Minute with Ron Hiebert - 2025 Political Risk
When looking at resource companies like mining or energy - where you invest is critical. Avoid companies operating in politically unstable regions, such as the Congo and Venezuela, or in countries with little respect for property rights and the rule of law such as Tanzania, Russia or Mongolia. Resources are a politically vulnerable business; you can’t move a mine or well to another country, once the infrastructure is in place, there are few options when the host country tries to extort the asset, or take most of the profits. Just like real estate, it is all about, location, location, location.
Making Money Minute with Ron Hiebert - Why Booms Go Bust
When investors get excited about a trend with blockbuster potential, they often over invest. After an idea gets flooded with too much cash, investors seldom get a return that justifies the amount put in. Imagine spending $300,000 to restore a classic car, only to discover when you are finished, that the best price you will be able to get at auction is $50,000. When reality hits that the money spent greatly exceeds the investments return potential, the herd rushes to the exit, panic selling for whatever little they can recover.
Making Money Minute with Ron Hiebert - Options
Stock options are risky. Most investors that speculate on them lose money. Unlike common shares, options have limited lifespans. You can hold common stocks indefinitely in the hope that their value may rise, but options have an expiration date. If an option is not sold or exercised prior to the end date, it becomes worthless. For this reason, an option is considered a wasting asset. As each day passes, the time window to make money decreases. To profit trading stock options, you have to be right in three different ways: price direction, the magnitude of price-change, and the time frame. This is easier said than done.
Making Money Minute with Ron Hiebert - Genius or Inside Trader?
If asked who you thought we’re the world’s best investors, you would probably come up with names like Warren Buffett or John Templeton. The truth is … they have been left in the dust by a most unlikely group - US politicians. A company called Quiver Quantitative, launched an ETF, which tracks and buys the stocks most heavily owned by members of Congress. Their picks were up 37%, whereas US markets, gained only 25% over the same period. These people are either the smartest investors on the planet, or trading on information the rest of us don’t have. Which do you think?
Making Money Minute with Ron Hiebert - The Permanent Portfolio
If you want to invest, but worry a bear market could chew a big hole in your nest egg, there are options that provide reasonable returns with limited volatility. One of them was developed by a financial guy named Harry Browne called the Permanent Portfolio. You divide your nest egg into 4 equal piles, and put 25% into a domestic long term bond ETF, 25% in a domestic short term bond etf, 25% in a gold etf, and 25% in a Canadian stock index ETF. After that, the only work required, is to rebalance once a year. Over 3 decades, this portfolio has averaged greater than 6% a year. Its worst annual drop during the period, was only 10%.
Making Money Minute with Ron Hiebert - Investing When Things Tank
Some economists think we are in a debt super cycle. This is where government borrowing exceeds not only the ability to repay the loans, but even make the interest payments on them. Eventually a crisis unfolds, causing central banks to bail out their governments by printing money. The aftermath, is inflation and currency depreciation. If this happens, tangible assets are where you want to be - things like precious metals, real estate and commodities. In a crisis, stocks decline and recover slowly. Gold shines, beating bonds by 71%. If the economy tanks, it is important for investors to have a plan B.
Making Money Minute with Ron Hiebert - Tariffs Aren’t A New Thing
US Tariffs, have the same impact, as our federal Goods and Service Tax, and the Provincial Sales Tax. They are a tax on consumption. You pay it when you purchase items and spend money. Tariffs are not a new source of government revenue. Before 1914, tariffs, or custom duties, as they were then called, were the primary source of income for the Canadian government. They accounted for over 85% of total revenue in the early 20th century. It was only at the outbreak of World War I, that Canada added corporate and personal taxes to pay for the war.
Making Money Minute with Ron Hiebert - Tariffs & Inflation
The idea that the US economy is going to experience hyper inflation because of tariffs, completely disregards the numbers. America imports about 3 trillion dollars worth of goods each year - a big number yes. However the size of the US economy totally dwarfs the impact of imports. America ‘s economic output, is ball park 30 trillion a year. This means imports represent about 10 percent of economic activity. Of course, higher tariffs will lead to higher prices and higher inflation - but the impact is not nearly as great as the alarmists predict.
Making Money Minute with Ron Hiebert - Stock Market Warning Signs
Investors are experiencing financial euphoria as they watch stock markets move from record high to record high. Just as parties don’t last forever, markets are showing signs, things are getting speculative. The first, is the amount of borrowing taking place to invest in stocks. This number is at all time highs. The other worrisome sign, is the army of small retail investors currently piling into the markets. They typically show up, near, or at the peaks - when the party is almost over. Yellow lights are flashing - signalling it is time to be careful around the speculative stuff.
Making Money Minute with Ron Hiebert - Tough Choices For The Disrupted
If you have a business, or are invested in one that has been technologically leap frogged, the competition now has the economic advantage. To get back in the game requires some uncomfortable and risky choices. The company can either adopt the new technology, leap frog over it and come up with a better mousetrap, bail on the sector and look for greener pastures, or, continue to have market share taken away, until it goes bust. Technology disruption is one of the biggest risks modern companies face. Investors need to watch for it, and be ready to wave goodbye at the first sign a business is losing its edge.
Making Money Minute with Ron Hiebert - Blue Chips
The term blue chip, actually has its origins, in the game of poker. It refers to the chip with the highest value. In the world of investing, “blue chips” are considered to be well-established, large, and financially sound companies that have a history of consistent performance and profitability. These stocks are often industry leaders, and viewed as relatively safe investments. For conservative investors, a blue chip portfolio, is also the one with the highest value. It gives solid returns with the least risk.
Making Money Minute with Ron Hiebert - Reshoring Opportunities
Reshoring, is the term used to describe companies bringing a chunk of their business back home from outside the country. The problem with Reshoring to a place like United States or Canada, is that labor costs are generally so high, that products made there, aren’t competitive in the global market place. The only way many domestic factories can compete, is for them to be automated. Reshoring might bring manufacturing back home, but jobs aren’t likely. The big winners will be the companies that construct the factories and automate them.
Making Money Minute with Ron Hiebert - Beef Prices
If you have bought steaks recently for a summer barbecue, you probably got sticker shock at the cash register. The number of cattle in this country has fallen in recent years. Ranchers, have faced rising costs due to increased feed prices, and drought conditions. Because it hasn’t been financially lucrative to raise beef, ranchers have let their herds dwindle down to their lowest level since 1987. But the cattle cycle, which runs 12 years trough to trough, looks like it could be bottoming. It might take a few years, but as supply increases, prices should start coming down again
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