Why it’s time for investors to go on defense

That is what Howard Marks, co-chairman of Oaktree Capital, instructed CNNMoney editor-at-large Richard Quest on “Markets Now” on Wednesday.

“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.”

CNNMoney's "Markets Now" streams live from the NYSE every Wednesday at 12:45 p.m. ET.CNNMoney's "Markets Now" streams live from the NYSE every Wednesday at 12:45 p.m. ET.
“Markets Now” streams reside from the New York Inventory Alternate each Wednesday at 12:45 p.m. ET. Hosted by CNNMoney’s enterprise correspondents, the 15-minute program options incisive commentary from consultants.
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