Its time for investors to start making much safer bets.
Marks also indicated the trade war with China as another factor for investors to tread thoroughly.
Financiers need to think about taking a stake in utilities, and decreasing their investments in more unpredictable tech stocks, he said.
” We have a trade fight with China, its most likely going to get fixed, but it might go off the rails,” he stated. “And if it goes off the rails, it has really major effects for the world economy.”.
Defense is the name of the video game for a couple of factors.
” Im not saying go out,” he stated. “I think that running out the market is quite unsafe today, and I think it would be an error to raise cash.” But more dependable stocks can protect financiers from huge losses if the environment changes.
Stocks have actually been soaring, Marks alerted that we might be nearing the end of the bull cycle.
” Defense is more crucial than offense” today, stated Marks, the author of “Mastering the Market Cycle: Getting the Odds on Your Side.”.
Thats what Howard Marks, co-chairman of Oaktree Capital, told CNNMoney editor-at-large Richard Quest on “Markets Now” on Wednesday.
” Im not stating get out,” he said. More dependable stocks can protect investors from huge losses if the climate changes.
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” Markets Now” streams live from the New York Stock Exchange every Wednesday at 12:45 p.m. ET. Hosted by CNNMoneys service reporters, the 15-minute program functions incisive commentary from professionals.