Making Money Minute with Ron Hiebert - Going Back Is The Problem

A lot of excitement was generated when America said it would use its navy to force open the Strait of Hormuz and give the hundreds of ships still trapped there access to international waters. That effort will certainly help to temporarily ease the shortfalls in fertilizer and crude that have been bottled up, but it doesn’t address the long term issues. Once a ship gets out of the Persian Gulf and empties its cargo at a foreign destination, is it likely to want do a U turn and head back? Iran has consistently said, it has the right to control passage through this strategic waterway. If this standoff continues, crude and fertilizer shortages are a long way from over. For more information listen to our Making Money podcast with Ron Hiebert and Graham Hicks at letsmakemoney.ca or CFCW.com.

Making Money Minute with Ron Hiebert - Pipelines Are Less Risk

Oil keeps moving above $100 US every time there is negative news on the Iran war and then it sinks on any glimmer of hope that there could be peace. These price swings are so hard to predict, that even professional oil traders find it hard to make money. A safer way to get exposure to the energy sector, is to look beyond oil and gas producers to the pipelines. They are not as exposed to volatile fossil fuel prices because most of their revenue comes from charging transportation fees to ship it. Pipelines also offer consistent dividends which pay you a nice income while you wait. When political tensions are high, opting for less risky ways to invest just makes sense. For more information listen to our Making Money podcast with Ron Hiebert and Graham Hicks at letsmakemoney.ca or CFCW.com.

Making Money Minute with Ron Hiebert - Wars & Elections

What will determine the fate of the global economy and the direction of its stock markets, is how long the stalemate between the US and Iran continues. Trump is facing an increasingly hostile electorate. The majority of whom don’t want to be involved in a war with Persia, and don’t like the pain energy prices are having on their wallets. Unless Trump can extract himself soon, you can stick a fork in any Republican success, come the November midterms. In war, one’s ability to withstand pain is even more important than one’s ability to inflict it. I worry that Iran can endure more pain than the US. If that happens, it will be bad news for stocks and the economy. For more information listen to our Making Money podcast with Ron Hiebert and Graham Hicks at letsmakemoney.ca or CFCW.com.

Making Money Minute with Ron Hiebert - The Job Vacancy Rate

Another way to look at Canada’s labor market is by counting the number of job postings that haven’t found anyone to fill them. This is called the job vacancy rate and as of January, there were 492,400 jobs that were open. Nationwide, this averages out to 3 unemployed persons for every job vacancy. These numbers go from highs of 5.4 unemployed persons for every job vacancy in Newfoundland and 3.8 in Ontario, to lows of 2.1 in Saskatchewan, and 2.3 in Quebec For your best chance of finding a job, go where the unfilled job vacancies are high and there are not a lot of people available to fill them. For more information listen to our Making Money podcast with Ron Hiebert and Graham Hicks at letsmakemoney.ca or CFCW.com.

Making Money Minute with Ron Hiebert - Scammers Are Pros

When people think about internet scams, they envision a solo person pulling it off from a slum in Nigeria. No one realizes how big a business this is and how much money it generates. The big players in this area are highly sophisticated. They have their own IT departments, marketing groups, legal and investment teams, offshore banking arrangements and creative professionals to continually come up with new and innovative ways to part you from your money. They can afford this, because their profits run in the tens to hundreds of millions. These are very sophisticated people. Be careful. For more information listen to our Making Money podcast with Ron Hiebert and Graham Hicks at letsmakemoney.ca or CFCW.com.

Making Money Minute with Ron Hiebert - The Plot Against Savers

In a normal economy the rate you can earn on savings should be higher than the rate of inflation so people are incentivized to invest. Over the last 2 decades for example, the interest rate on savings accounts for the most part has been consistently lower than the rate of inflation. Even without taking taxes into consideration, this means a persons nest egg is losing ground year after year. Don’t expect any help from the government to normalize things. They want to keep rates depressed because it lowers the huge payments they need to make on their ever increasing debt. It also rescues the average consumer, who is similarly drowning in red ink. If you are a saver, the system isn’t designed to work for you. For more information listen to our Making Money podcast with Ron Hiebert and Graham Hicks at letsmakemoney.ca or CFCW.com.

Making Money Minute with Ron Hiebert - Hype vs Reality

When a sector goes straight up in price, the dominant headlines are predictions of a new era, suggesting investors throw caution to the wind because conditions are different this time. We recently witnessed this with precious metals, crypto currencies and artificial intelligence. They all had a huge run that was supposed to never end. The problem with assets on steroids, is they convince more and more people as they rise that the hype is valid. New converts climb on board the freight train to riches, pushing shares higher in a self reinforcing loop. Investors never seem to learn that parabolic moves, are dangerous to their wealth, and usually end in tears. For more information listen to our Making Money podcast with Ron Hiebert and Graham Hicks at letsmakemoney.ca or CFCW.com.

Making Money Minute with Ron Hiebert - Wars Changing Technology

The conflict in Iran has really highlighted how the weapons needed to do the job have changed. Iran is using swarms of $20,000 drones offensively. America is shooting them down with missiles that cost 2 million to 4 million dollars a piece. To learn how to fight on this new type of battlefield, the US has called in experts from Ukraine to help them. That country has been locked in a bitter high tech conflict with Russia that has focussed on unmanned weapons in the air, on land and in the sea. For investors looking at the defence sector, its next wave of growth, is going to come from companies that can develop and supply this new technology. For more information listen to our Making Money podcast with Ron Hiebert and Graham Hicks at letsmakemoney.ca or CFCW.com.

Making Money Minute with Ron Hiebert - Defence Stocks

Defence stocks have the political and economic winds at their back. Countries in Europe and Asia, have ramped up defence spending out of fear that the US could walk away from commitments to protect them. They have little trust, in the intentions of China, Russia, North Korea or Persia. Current wars, like Iran and Ukraine, are draining equipment and munitions faster, than countries can manufacture them. The use of drones and robots, is reshaping how wars are fought, and starting a whole new spend cycle to develop and build them. It may be a depressing view of our human frailties, but in uncertain times, conflicts heat up and defence spending rises right along with it. For more information listen to our Making Money podcast with Ron Hiebert and Graham Hicks at letsmakemoney.ca or CFCW.com.

Making Money Minute with Ron Hiebert - America Still The Cleanest Dirty Shirt

Investors, have been diversifying their portfolios outside of the US for two reasons. They dislike President Trump’s bullying, and they worry that America is declining as an economic power. Yet, even though its numbers are weakening, the US is still the cleanest dirty shirt in the laundry. Five years ago, America’s total economic output was $23 trillion dollars. Today, that figure has climbed to $30 trillion, and now accounts for more than the total economic output of the next 6 G7 nations combined. America’s growth, even though weaker, is leaving other western nations in the dust. Uncle Sam, for all its problems, still provides some of the world’s best and most consistent growth opportunities. It is not all doom and gloom. For more information listen to our Making Money podcast with Ron Hiebert and Graham Hicks at letsmakemoney.ca or CFCW.com.