” Defense is more crucial than offense” today, said Marks, the author of “Mastering the marketplace Cycle: Getting the Odds on Your Side.”.
Investors should consider taking a stake in energies, and reducing their investments in more unpredictable tech stocks, he stated.
” Im not stating get out,” he stated. More reliable stocks can protect financiers from big losses if the environment changes.
” Im not saying go out,” he said. “I think that running out the market is pretty hazardous today, and I believe it would be a mistake to raise cash.” More trusted stocks can safeguard financiers from huge losses if the environment modifications.
Defense is the name of the video game for a few reasons.
Though stocks have been skyrocketing, Marks warned that we may be nearing the end of the bull cycle.
Marks also indicated the trade war with China as another factor for financiers to tread thoroughly.
” We have a trade fight with China, its probably going to get resolved, but it might go off the rails,” he said. “And if it goes off the rails, it has extremely serious effects for the world economy.”.
Thats what Howard Marks, co-chairman of Oaktree Capital, told CNNMoney editor-at-large Richard Quest on “Markets Now” on Wednesday.
Its time for financiers to begin making much safer bets.
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