Question: I’ve recently asked specifically about EVN, and generally about the softening of the gold sector’s prices.

Answer (By Paul Rickard): Evolution Mining (EVN) is a great gold producer – but it has no control over the price of its one commodity – gold.

With bond yields soaring, the gold price has been smashed.

I really don’t have a strong view on where the gold price is heading, except to say that I can’t see any compelling reason to buy yet.

Question: I am a little confused about two companies: CSL (CSL) and Cochlear (COH). Do you have any suggestions? Let it go or stay with it?

Answer (By Paul Rickard): The market is in a great hurry to find cyclical exposures, and healthcare is viewed unfavourably. The Australian market is not unique – we are following a lead out of the USA. Funds are rotating out of healthcare into other sectors.

CSL and Cochlear are great stocks, but the market feels that they are expensive.

My view is to stick with them – however, you might have to wear some pain in the short term.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.