Making Money Minute with Ron Hiebert

Making Money Minute with Ron Hiebert - Robots Are Coming If you want a sneak peek at what a workplace dominated by AI and Robotics will look like, your window into that future, is a typical Amazon fulfilment centre. Roughly 75% of Amazon deliveries are now assisted by robotic systems. The number of packages that Amazon ships per employee has soared from 175 in 2015 to 3,870 today. Amazon will soon have as many robots working at its packaging centres as it does people. The human headcount per centre has fallen by 30% in the last 5 years, and is expected to keep sliding as machines rapidly replace us. Welcome to the future!

Making Money Minute with Ron Hiebert - Electric Vehicle Repair Rates It is logical to assume that since electric vehicles have simpler power trains, they should require fewer repairs than those with internal combustion engines. According to J. D. Power, the real world experience is quite different. Owners of cutting edge, tech-filled battery electric and plug in hybrids are seeing problems that require a trip to the dealership at a rate three times higher than gas-powered vehicles. Buyers of electric vehicles need to be realistic. This is new technology. It requires time to work out the bugs.

Making Money Minute with Ron Hiebert - Canadian Crude & US Demand The problem with horizontal drilling in shale formations is the high rate of production decline these wells experience. This is tolerable when prices are high, but when they drop below $60 per barrel, which is the breakeven point for a lot of shale drillers, new production dries up. This is currently what is happening in the US. Fewer new wells coming on stream, means the US will import more oil to meet its needs. For Canada, which has oil sand producers with break even costs in the low $40's, and the infrastructure to get oil down south, this is great news.

Making Money Minute with Ron Hiebert - Thinking Two Dimensionally When investing in oil and gas stocks, we often think price increases are good and price declines are bad. But that is one dimensional thinking. When prices go up, of course energy stocks will rise. But when prices decline, a whole other category of businesses do well. Capturing those moves is two dimensional thinking. Winners in a declining energy price environment include, refiners, and intensive energy users like airlines, cement and fertilizer plants. Learning to think two dimensionally will help you spot opportunities in almost any market.

Making Money Minute with Ron Hiebert - ariffs & Markets Markets are trading at all time highs. Traders seem to be ignoring all the threats out there. Tariff's can lead to trade wars and if not managed properly bring on a nasty recession and bear market. There are two opinions as to why this is happening. The first is that we are in a bubble where greed and FOMO, the fear of missing out, are distorting normal rational behaviour. The second is that these traders actually believe tariff issues will get resolved and end up being a net positive for the economy. Considering the alternative - I hope they are right.

Making Money Minute with Ron Hiebert - Stocks & Inflation If you buy a 10 year, fixed rate bond, the investment will pay a steady return and at maturity you are promised to get your principle back. The hidden risk with fixed income, is inflation - which in Canada has averaged 2.65% over the last decade. It slowly gnaws away at your returns. One way to protect against inflation is by owning stocks. For example, the companies that make up the S&P 500 since 1988, have increased their dividend payouts by 6% per year. If you want to protect your income from the ravages of inflation, stocks should be in the mix.

Making Money Minute with Ron Hiebert - Disasters & Insurance If Trump hasn't scared you off buying a winter home in the US sunbelt - maybe this will. The natural disasters that took place the last few years have caused insurers to see a lot of red ink. Huge claim payouts forced them to dramatically jack up insurance rates. Take Florida for example, a favorite snowbird destination that has seen its fair share of hurricanes the last few years. The average cost to insure a home in the Sunshine State is expected to reach $15,460 US by the end of the year. So before you buy a property down South, check the cost of insurance. It might be a deal breaker.

Making Money Minute with Ron Hiebert - Solar Growth After decades of rosy predictions, solar usage is about to hit prime time. Estimates have solar power generation surpassing nuclear in 2026, wind in 2027, dams in 2028, gas in 2030, and coal in 2032. At its current growth rate, solar capacity is doubling about every three years—and by a factor of 10 over the next decade. By 2035, solar could be earth's biggest source of electric power. Far more solar panels are expected to be manufactured in the future than have been produced in the past, giving this trend a long growth runway

Making Money Minute with Ron Hiebert - Black Markets The world's shadow economy, or black market, includes everything from street vendors to illicit drug trade. It is that grey area of finance where government has no control, and does not tax. Globally, the black market is huge - generating an estimated 12.5 trillion dollars annually in revenue. In places like Brazil, India and China, the shadow economy is responsible for over 20% of the countries economic activity. In western countries like the US, UK, Germany and Japan, that number is between 5-7%. Black markets make economic forecasting difficult. It is hard to predict what you can't accurately measure.

Making Money Minute with Ron Hiebert - Copper One of the tried and true ways of convincing new investors to part with their money is to tell them what they are buying is going to be the next big thing. Take for example the metal copper. Since the dawn of Tesla, and their market transforming electric car, the experts have been saying there will be a huge shortage of this industrial metal and prices will sky rocket. However, the reality is that copper is trading at around the same price, it was at in 2011. Before buying the hype, check the reality.

Making Money Minute with Ron Hiebert - Hang On To The Winners At an annual general meeting in 2013 Warren Buffett gave his shareholders some insight into his stock picking process. He said that over his life, to that point, he had owned between 400 and 500 companies. Out of all those picks, the bulk of his profits came from just 10 of them. His partner Charlie Munger added, that without those 10, their returns would have been pretty average. The key to building wealth is not in in how fast you can get in and out of the market. The key is hanging on to your winners long enough so they add meaningful gains.

Making Money Minute with Ron Hiebert - Lotteries Lotteries are big business. Americans for example, spend more on them, than movies, video games, music, sporting events and books combined. Unfortunately, the people who buy tickets are financially struggling and that is probably why lotteries are often referred to as a tax on the poor. The lowest income households spend $412 per year on tickets. It is sad, because this the same group that struggles to find a couple hundred dollars to cover an emergency expense. Their lottery spend,is four times as much as households in the highest income bracket.

Making Money Minute with Ron Hiebert - Growth is More Than Tech Investors are under the false impression that if they are looking for growth companies, the tech sector is really the only game in town. Certainly tech stocks have done well, but so have a lot of other sectors. If you look at the top ten performing stocks in Canada over the last 20 years, it is quite a diversified list of two gold stocks, 2 manufacturing firms, 1 construction company, 1 real estate investment trust, one consulting firm, one pharmaceutical company, one auto service and one tech name. If you are hunting for growth, it is worth broadening your horizons.

Making Money Minute with Ron Hiebert - Nvidia Nvidia, is a maker of high end computer chips, especially used in Artificial Intelligence applications. It has become the world's most valuable company, recently cracking 4 trillion dollars in market value. The rise has been relentless. Nvidia achieved a trillion dollar market value in June 2023, and then tripled it a year later. Put in perspective, Nvidia is worth more than the combined value of the Canadian and Mexican stock markets, and it exceeds the total value of all publicly listed companies in Britain. Nvidia and stocks like it, are a reminder why investors want some exposure to tech in their portfolios.

Making Money Minute with Ron Hiebert - What Tariffs Really Are Politicians describe tariffs in warm fuzzy terms - how it will rebalance trade, cause domestic businesses to reshore, and motivate foreigners to build domestically to get around the extra costs. What is never talked about, is the damage they cause our wallets. What tariffs really are, is a sales tax that goes into government coffers and comes out of our pockets. The main victim is the consumer, though some of the costs can be absorbed by foreign manufacturers and domestic sellers. The notion that tariffs are a painless economic fix - is simply nonsense.

Making Money Minute with Ron Hiebert - Boring Is Beautiful Recently a European official was quoted as saying, “If you want a sane, stable, even boring, rules-based order and predictable business environment, Europe is the place for you.” Investors, tired of the chaos US markets have been experiencing lately under Trump's ever changing tariffs, have been listening. Money has been moving across the pond and has caused European stock markets to significantly outperform those in the US. So in spite of Europe's slow growth and Byzantine regulations, investors are finding that boring can be beautiful.

Making Money Minute with Ron Hiebert - Death By Regulation The size of Canada's manufacturing sector has just been overtaken by Ireland. This is pathetic beyond words. Ireland is a country with one eighth our population. The reason we are viewed as an unattractive place to invest is regulation. We are drowning in it. Rules have increased by 42% since 2005 and now total 105,000. The atrophy of our industrial base is a case study on everything you don't want to do. Our failure puts us at the bottom of the industrialized world. They should call it, strangulation by regulation.

Making Money Minute with Ron Hiebert - Money & Happiness Does money make you happy? This is a question that has been debated for ages. According to the latest research the question has two answers. It seems that if you aren't happy to begin with, extra money does little or nothing to change your mood. However, if you are happy already, a positive change in finances will even make you happier. The extra cash simply allows you to do more of the things that you derive enjoyment from. If you aren't happy to begin with, all the money in the world isn't going to change things.

Making Money Minute with Ron Hiebert - How Alberta Ranks Canada's wealthiest province is Alberta. If you compare us economically to the 50 states in the US, we would rank 16th, just behind Minnesota. Saskatchewan which has the second highest GDP per capita ranks 21st. On the other end of the scale, are the three maritime provinces. They rank behind Mississippi, which is the poorest state in the US. Not surprising, it is the Canadian provinces with the highest energy resource wealth that top the list. Governments need to remember that - before trying to kill the golden goose.

Making Money Minute with Ron Hiebert - Tax Freedom Day For the average Canadian, tax freedom day is June 8th this year - one day earlier than 2024. If Canadians paid all their taxes up front, they would work the first 158 days of this year before bringing any money home for their families. This number represents all Federal, Provincial and Municipal Taxes and indirect fees like GST, PST, health and sin taxes. These costs total up to 43.1% of the average Canadian families income. The sobering thing, is that if Canadian's paid enough taxes to meet all of this years Government spending, and balance the budget, tax Freedom Day wouldn't arrive till June 21st.

Making Money Minute with Ron Hiebert - First Time Homebuyers A recent CMHC Mortgage Survey, uncovered some interesting trends among first time home buyers. 64% of them, rented prior to buying their first home, while 35%, formerly lived with friends or family. Those that rented, did so for 6.3 years before purchasing a home. On average, first timers had to save 3.4 years for their down payment. 35% of newbie home buyers, were helped with their downpayment by a gift or inheritance - the average size of which was whopping $79,127. Interestingly, half of these first-timers, shared the purchase of their home, with someone other than their partner or spouse (54%).

Making Money Minute with Ron Hiebert - Argentina As A Role Model The headlines are dominated by stories of countries like the US and Japan sinking into a quicksand of unsustainable debt. The US, recently, had the last of the three major credit rating agencies, pull their triple AAA rating. But, in spite of the gloom, there are some encouraging trends. Greece, has reclaimed its investment-grade credit rating, and recorded a budget surplus last year. Argentina, which was another perennial basket case, has dramatically cleaned up its act and also recorded a budget surplus. C'mon guys. If Argentina and Greece can get their economic act together - so can we.

Making Money Minute with Ron Hiebert - Money Printing & Markets People are scratching their heads over the reaction stock markets are having to recent political events. Equities continue to rise, in spite of - trade battles, rising deficits, a 3 year war between Russia and Ukraine, and the bombing of Iran by America. The destabilization of the global economy is simply shrugged off. This weird reaction, is because the world is drowning in cash. Governments are printing currency at a frenzied pace. This money needs to be invested no matter what the political environment or market valuation…as it just keeps piling up

Making Money Minute with Ron Hiebert - A Life Plan People get pushed out of the workforce before they are ready, often based on cost cutting decisions by the companies they are working for. If an employee is unprepared, or unable to find a similar level of work, the unexpected change can lead to feelings of boredom, regret and loneliness. Therefore it is important, to not only have a financial plan for retirement, but a life plan as well. The second plan, is a thought out course of action, that will give your retirement life purpose, meaning and fulfillment. These are plans best made, before, and not after you leave the workforce

Making Money Minute with Ron Hiebert - The Triple AAA Club A triple A credit rating is the best you can get. For investors needing sterling quality in their bond portfolios, this is where you want to look. Due to the drunken spending spree most countries have been on, that list has shrunk dramatically over the years. It is down by a 1/3rd since the financial crisis of 2007 and currently has only 10 members. The nations that still have a triple AAA rating from all three major rating agencies include: Australia, Denmark, Germany, Singapore, Norway, Sweden, Switzerland, Liechtenstein, Luxembourg and the Netherlands. The list of countries that don't make the cut is long - and growing.

Making Money Minute with Ron Hiebert - Gasoline Is Cheaper In The US If you are adventurous enough to head south of the border for a driving vacation this summer, the Canadian dollar won't buy much. However the one area you can actually save some money, is fuel. It is amazing how much cheaper gasoline is below the 49th. Even including the currency differences and the differential in litres verses gallons, our costs on average are at least 20% higher. The vast majority of this price spread, consists of higher Canadian provincial and federal taxes.

Making Money Minute with Ron Hiebert - China & Profits The massive shift in manufacturing to China wasn't a globalist conspiracy. Manufacturing moves where it can economically survive, and the problem, is the high cost of western goods, have priced many of them out of the market. There is an old saying, “When the Chinese walk into a room, profits walk out.” Even low cost manufacturers in China, due to razor thin margins, find it hard to compete profitably with one another. China's stock markets, are trading at the same levels they were at two decades ago, signalling little, if any, profit growth. If Chinese companies enter a sector you are invested in, beware, of the great profit vanishing act.

Making Money Minute with Ron Hiebert Tariffs Force Change There is a something sadly disturbing about human economic behaviour. It has been my observation that we never change when we see the light. We are only forced to change, when we feel the heat. Canadians have consistently ignored the consequences of running massive deficits, being to dependent on the US for trade, neglecting our defence responsibilities, having huge interprovincial trade barriers and exporting raw materials instead of finished products. There is a bright side to this tariff conflict. It is finally forcing us to deal with these issues.

Making Money Minute with Ron Hiebert Confusing Economic Indicators One of the reasons people are so confused about the current state of the markets, is that they are getting many differing signals as to what will happen next. Indicators tracking consumer and business confidence, are very negative in their outlook. Yet stock markets, typically dominated by professional investors, have been spiking to new highs. This makes it tough for investors, who are looking for clues on what to do. When opinions are so polarized, sometimes the best strategy, is to simply wait until the dust settles and you get more clarity.

Making Money Minute with Ron Hiebert The Political Right And The Environment We need to leave politics out of our environmental debates. The spin doctors would have you believe that only left leaning organizations can deliver environmental progress. The numbers prove the opposite. Texas, California, Iowa, Oklahoma, and Kansas were the top five states generating renewable energy. Four of them are Republican and one is Democrat. In Canada, Ontario is the leader in solar and wind generation and has a Conservative premier. Environmental leaders, come from both the left, and the right side of the political spectrum.

Making Money Minute with Ron Hiebert

Making Money Minute with Ron Hiebert Affinity Crimes People let their guard down when dealing with others they know and trust. This is especially true if those people are associated with a charity based institution or faith. Criminals also know this, and often will infiltrate those groups for the sole purpose of networking with people they can maneuver themselves into a position to scam. These happen so regularly, that law enforcement even has a special name for them. They are called affinity crimes. So, if someone from a group you belong to, wants to do a monetary transaction with you - be especially careful.

Making Money Minute with Ron Hiebert Scammers & AI Artificial intelligence is going to revolutionize the way we work and live over the next 15 years. It is also going to give scammers, very sophisticated new tools to part you from your money. If AI is exposed to a voice recording for a minimum of 3 seconds, it can now imitate the way you talk. Soon, it will be able to animate your facial expressions as well. So, even if you recognize a voice on the phone, and the conversation centres around money, ask them a question only a real person who knows you, could answer. As scammers get more sophisticated, so must their victims.

Making Money Minute with Ron Hiebert Managed vs Free Trade Free trade allowed goods and money to flow globally with very few restrictions. The upside is that it brought a lot of prosperity and growth to countries that had big cost advantages in manufacturing. The downside, was that it also created losers with massive trade deficits. This imbalance has proved unsustainable. What will replace it, is a system of managed trade. Countries will have to negotiate what they will buy and sell to each other, to maintain more of a trade balance. Growth will likely be lower, but more sustainable.

Making Money Minute with Ron Hiebert Trump Forces Change I haven't been this positive about Canada's future in over a decade. As a nation, we are finally focussed on standing on our own two feet and becoming more than just a second tier branch plant, supplying goods and services to the US. This is no longer just a political talking point, but a deep change in our national resolve. The restructuring it will take to get there, isn't going to be quick or painless, but Canadian's have the toughness and resiliency needed to make it work.

Making Money Minute with Ron Hiebert Think Like A Sailor When markets get volatile, investors scramble after the fact to get more conservative. Unfortunately, by then, prices are down and the investor gets a financial haircut. When taking a boat on an extended sail, we don't just plan for nice weather. Before leaving port, we assess the worst weather we would encounter, and then strengthen or make appropriate changes to the vessel, so it could withstand them. The lesson here, is that investors need to make sure their portfolios are durable enough to weather tough markets, before, and not after they start experiencing them.

Making Money Minute with Ron Hiebert The Changing Defence Industry If you wanted to buy defence stocks, you would normally look for the ones that built really expensive equipment like planes, missiles, submarines or aircraft carriers. Then zero in, on those having the juiciest contracts with big spender governments. The Russian/Ukrainian War has changed the combat equation. Battles are now being fought using drones on land, sea and sky. They are directed by cameras and sophisticated electronics, from operators, often thousands of kilometres away. Drones are much cheaper to produce than traditional military hardware, and are made by different companies. Investment strategies need to adapt.

Making Money Minute with Ron Hiebert Oil Surplusses Unless we have a war or other major disruption to oil production, it looks like prices aren't headed higher anytime soon. Russia is in peace talks with Ukraine, and the US, is pursuing a nuclear weapons treaty with Iran. If one or both are successful, it will lead to sanctions being lifted, giving both of these large producing nations, access to global markets once again. OPEC alone, has 5.3 million barrels per day of spare production capacity, available to bring on stream. Currently the world is drowning in oil, and until that changes, prices will remain weak.

Making Money Minute with Ron Hiebert Where Nuclear is Growing Many investors are avoiding the nuclear sector, because they think cost overruns and construction delays make them uneconomic to build in the west. This outlook ignores what is going on in the rest of the world. China for example can build a nuclear reactor for 2.5 billion US, which is a quarter our cost. That country has 40 reactors in various stages of planning and construction, and another 72 proposed. Maybe nuclear construction is moving at a snails pace in the west, but that certainly doesn't reflect what is going on elsewhere.

Making Money Minute with Ron Hiebert Russia & Commodity Prices For the first time is over 3 years, we are beginning to see baby steps towards peace talks between Russia and the Ukraine. Investors should be paying attention. Russia's economy has been badly damaged by the war and trade embargoes that followed. As soon as peace comes and the sanctions are lifted, Russia will begin dumping stockpiles of things they haven't been able to sell for years, to gain much needed cash. Commodities like metals, grains and fossil fuels could come under pressure as a large increase in supply forces prices down.

Making Money Minute with Ron Hiebert Going Into The Trades Generation Z are the kids born between 1997 and 2012. That would make the oldest of them, 28 this year. A recent survey of this group, found that half thought a 4 year university degree was a waste of time and money. Historically, higher education was the key, to better job prospects and higher incomes. That is changing, because of artificial intelligence and offshore competition. Young people are starting to figure out that an education in the trades is where the action is. Lower education costs, less debt, and a job you are trained for when you graduate - what's not to like.

Making Money Minute with Ron Hiebert Vehicle Economics Many people are teetering on the fence deciding whether their next new vehicle purchase should be electric or internal combustion. We will set aside personal issues like access to chargers & environmental impact and focus on the economics. To determine the vehicle that will give you the most bang for your buck, requires taking into account five essential elements: the initial purchase price, annual insurance, borrowing costs, maintenance and operating expenses, and depreciation. Only by calculating these five items, do you get a clear picture of your total costs and thus your best economic option.

Making Money Minute with Ron Hiebert Fees and Performance When researching mutual funds, their turnover rate is one criteria that should be included on the list. This is the amount of buying and selling that takes place in a portfolio annually. Typically the higher the turnover the lower the returns. Over 15 years, almost a 1/3 of funds, that had a low turnover rate of 25% or less, were able to outperform the market. Among funds that turned over their portfolios twice a year, only 10% outperformed the market. The more you trade, the more it costs, and those fees have a dramatic impact on the bottom line.

Making Money Minute with Ron Hiebert

Making Money Minute with Ron Hiebert

Making Money Minute with Ron Hiebert

Making Money Minute with Ron Hiebert

Making Money Minute with Ron Hiebert

Making Money Minute with Ron Hiebert

Making Money Minute with Ron Hiebert

Making Money Minute with Ron Hiebert