Making Money Minute with Ron Hiebert

Making Money Minute with Ron Hiebert - A Cash Stash Futurists often talk about the day when societies will move past physical currencies, and all financial activity will be digitally or electronically based. For this reason, many people no longer carry cash, or for that matter, have an emergency stash they keep at home. This is a mistake. If the electricity doesn’t work, or our digital infrastruct...

Making Money Minute with Ron Hiebert - Government Aren’t Good At Business Canada wants to build all kinds of infrastructure to make us less dependent on the US. The problem is that our projects seem to end up costing 2 to 5 times as much to complete as our foreign competitors. Whether we talk about pipelines, dams, electrical transmission or nuclear power … our cost over runs are third world. When...

Making Money Minute with Ron Hiebert - Public vs Private Markets Publicly traded securities are priced at whatever buyers and sellers establish as their worth. Because situations can change rapidly in a free market economy, so do opinions and the prices investors are willing to pay. The negative side of being public is volatility. The positive is price transparency. Private equity owns assets that...

Making Money Minute with Ron Hiebert - What Are The Odds What brings gamblers into the stock market is the hope that they find the next Apple or Nvidia before it has a phenomenal price increase. They then plan to take a couple grand, hop on board, and let the ride make them a millionaire. Good on you if it works - but really….what are the odds of taking $2000 and putting it on a company that goes...

Making Money Minute with Ron Hiebert - Lipstick on a Pig One of the great linguistic achievements of modern economics, has been its ability to take very alarming trends and wipe them from our collective memories by giving them nicer names. Debt became stimulus, government spending became investment, money printing became liquidity, bailouts became stabilization, intervention became support, inflat...

Making Money Minute with Ron Hiebert - Plan B Mike Tyson described perfectly the problem people have dealing with adversity. He commented that “most of us have a plan until we get punched in the face.” Investors, will typically buy a stock or fund, because they see a lot of good things taking place that will push up the price. When this happens, the buyer knows what to do because they planned for...

Making Money Minute with Ron Hiebert - Collector Car Trends Low supply and high demand drive the collector car market. What is hot right now, are vehicles that have V8 or V12 engines, especially if they come with a manual transmission. Low milage cars with both of these options get snatched up quickly and at a considerable premium. The reason, is that manufacturers just aren’t making vehicles with...

Making Money Minute with Ron Hiebert - Debt & Interest Rates For every dollar of revenue the US government takes in, 19 cents of it, is needed to pay the interest on America’s 40 trillion dollar federal debt. The amount of money required to service this debt has doubled in the last 6 years, and could reach 30 cents on the dollar by 2035. What is most worrisome for investors, is that neither the De...

Making Money Minute with Ron Hiebert - AI Programming Software In spite of its well documented problems, artificial intelligence capabilities are advancing at an exponential rate. The length and complexity of tasks AI is able to complete, roughly doubles every 5-7 months. What’s amazing, is this growth is likely to progress even faster. In the past, human programmers developed software for each ne...

Making Money Minute with Ron Hiebert - Consumer Stock Meltdown Companies that produce brand name products like Campbell Soup, General Mills and Nestle used to be places where conservative investors could go to find unexciting, but steady growth in sales, profits and dividends. These days - not so much. Over the last 5 years, many of these brands have seen their share prices fall by a third to half...

Making Money Minute with Ron Hiebert - Alcohol’s Headwinds Beer and alcohol stocks used to attract conservative investors looking for companies generating steady growth. Over the last 5 years, this sector has been a disappointment. Sales and profits have headed in the wrong direction, taking stock prices along with them. And it doesn’t look like this trend will change. Younger customers are just n...

Making Money Minute with Ron Hiebert - Canadian Energy’s Security of Location Canada is blessed with an abundance of energy. Globally we rank 4th in oil reserves and 9th in natural gas. Just as important - is our location. Buyers of Canada’s energy exports to Europe and East Asia, have direct access to them, via transportation routes across the Pacific and Atlantic Oceans. The product does not hav...

Making Money Minute with Ron Hiebert - Gold Bear Markets If you want to own physical gold, you have to learn to accept the volatility that comes with it. The metal has suffered 15 bear markets since 1971. Seven of those 15 “bear markets” lasted six months or less, with an average decline of 23% over 90 days. These numbers are close to the recent correction, which is down 20% over 6 months. By cont...

Making Money Minute with Ron Hiebert - Central Banks & Gold Countries hold reserves in foreign currency to pay for their trade with other nations. Typically, the majority of these funds are denominated in US dollars. That has changed, as more nations reduce their greenback holdings and replace them with physical gold. The yellow metal is now the world’s second largest reserve asset - representing...

Making Money Minute with Ron Hiebert - Running Out The Clock Canada and Iran seem to have a common strategy. They are both passing on an immediate deal with the US that would be much to their disadvantage. By waiting, it pushes Trump closer and closer to the Mid-term elections on November 3rd, which he and the Republicans desperately need a victory in, to have any hope of completing their agenda....

Making Money Minute with Ron Hiebert - The Wealth Pump Our competitive standing globally is slowly disappearing because other nations are doing a better job selling higher quality products and services at more affordable prices. Nationally this leads to less profits and less wealth. To compensate, governments focus on economic policies that keep stock and real estate prices rising. This strategy i...

Making Money Minute with Ron Hiebert - Inflation Is a Global Problem What $100 would buy you in 2019, will only purchase $81.17 worth of goods today in Canada. We are not alone. This same loss of buying power has been experienced in Portugal, Sweden, Italy and frankly most of the western world. The reason is the same everywhere. When you print money at a faster rate than the economy is growing, to...

Making Money Minute with Ron Hiebert - Rising Interest Rates For conservative investors times are improving. Interest rates have been steadily going up. Last week the yields on 5 year GIC’s in Canada were as high as 4.3%. Rates on 10 year government bonds were greater than 5%in the US, Australia and the UK. In Mexico, 10 year bonds were above 9% and in Brazil, yields exceeded 14%. Inflation has be...

Making Money Minute with Ron Hiebert - Repeating The Same Mistakes Bubbles continuously blindside investors. Humans it seems are very good at learning specific lessons, but lousy at transferring that experience into an understanding of the bigger picture. When the internet bubble burst 26 years ago, the experience taught us correctly, that tech was risky, but incorrectly, that it should be avoided...

Making Money Minute with Ron Hiebert - Oil Choke Points Crude is trading at $100 per barrel again. This is not because we are running out, but rather because the oil we have isn’t getting delivered. Maritime transportation choke points are being squeezed. The Strait of Hormuz is partially shut down and Iranian backed rebels are seeking to block the southern end of the Red Sea. Russia has had a sig...

Making Money Minute with Ron Hiebert - Retirement Housing Canada's population aged 75+, is forecast to grow by 54% and reach 5.2 million by 2035. Estimates suggest all this growth will need 200,000 additional retirement suites over the next decade to soak up demand. For this to happen, requires construction speeding up 6 times faster than its current pace. In Ontario, the waitlist for long term ca...

Making Money Minute with Ron Hiebert - You Need A Spending Plan The biggest problem good savers face, happens when they finally decide to retire. For decades they denied themselves, prioritizing saving over spending in order to have a nest egg when they stopped working. These savers had a plan to help them reach their retirement goals. Now that they have arrived, they have no clue, how, when, and...

Making Money Minute with Ron Hiebert - Profit Risk Let’s say you bought a stock with amazing potential with 3% of your total assets. Then it goes on a tear, rising to the point where this single security represents a third of your net worth. On paper this looks like a tremendous win. Yet in reality, one of the most dangerous moments in investing, comes after you’ve made a lot of money. Now a good...

Making Money Minute with Ron Hiebert - tocks Long Term Performance For all its crashes, bubbles and occasional craziness, the stock market has been one of the best places for long term investors to grow their wealth. Over the 100 year period ending in 2025, American investors earned 91 trillion more dollars investing in common stocks than buying one month Government Treasury bills. Going back even...

Making Money Minute with Ron Hiebert - Sports Betting Losers Research suggests only three to five percent of sports bettors make money over the long run. This reflects high betting fees of 4-5% and that many of the betting sites limit the wager size or restrict the accounts of the most skillful players. Notwithstanding the small percentage of winners, the survey found that 39 percent of bettors cl...