“Protection is extra essential than offense” proper now, mentioned Marks, the writer of “Mastering the Market Cycle: Getting the Odds on Your Facet.”
Traders ought to contemplate taking a stake in utilities, and lowering their investments in additional unstable tech shares, he mentioned.
Protection is the secret for a couple of causes.
Although shares have been hovering, Marks warned that we could also be nearing the tip of the bull cycle.
“I am not saying get out,” he mentioned. “I feel that being out of the market is fairly harmful at the moment, and I feel it might be a mistake to boost money.” However extra dependable shares can defend buyers from large losses if the local weather adjustments.
Marks additionally pointed to the commerce warfare with China as another excuse for buyers to tread fastidiously.
“Now we have a commerce battle with China, it is most likely going to get solved, however it might go off the rails,” he mentioned. “And if it goes off the rails, it has very severe penalties for the world financial system.”