Gordon: Are there any sectors that you currently recommend?
Joel Clark, KJH: As a value investor, I am attracted to U.S. financials, especially the high quality ones, as well as the automotive sector.
Guest: Your opinion on index funds? I recently switched them. My allocation is 22% Cdn, 22% U.S., 16% Int & remaining 40% in bonds.
Joel Clark, KJH: Version of lower cost mutual funds but you still need to get the timing right in the short to medium term.
Grant: How hard will 1-5 year bond funds be hit when interest rates rise?
Joel Clark, KJH: Not much, especially given that 20% rolls off every year.
Grant: I often hear that you can't stay in cash because you are losing money to inflation, what is one supposed to do?
Joel Clark, KJH: Depends on your time horizon but over long periods of time the equity market has been the best performing asset class as it reflects wealth creation.
Guest: Views on gold in the near future?
Joel Clark, KJH: I'm not a gold bug so keep this in mind but given governments around the world are reflating like mad, this is when gold should shine - question of whether in the price already.
David: For an extremely long term investment how does MSCI EAFE and Emerging markets ETFs look for non-U.S. international exposure?
Joel Clark, KJH: We are North American focused so can't really comment but I'd prefer a North American company that operates in emerging countries versus an emerging country stock - better transparency and more stable laws.
Chris: Some Mutual Funds and ETFs invest in senior secured bank loans. Those loans float, resetting roughly every 3 months. That sort of investment won't be highly impacted by a rising interest rate environment. Correct?
Joel Clark, KJH: Correct, as they reset as rates rise.
Grant: Your thoughts on balancing a portfolio with a broad commodities ETF and what percentage?
Joel Clark, KJH: Commodities are risky and volatile plus they are self correcting as prices rise higher cost production comes on providing more supply - they are meant to be bought and sold.