Making Money Minute - October 10, 2025
Update: 2025-10-10
Description
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.
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.
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