Stocks have been soaring, Marks warned that we may be nearing the end of the bull cycle.
” We have a trade fight with China, its probably going to get resolved, but it may go off the rails,” he stated. “And if it goes off the rails, it has very major effects for the world economy.”.
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” Defense is more vital than offense” right now, 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.
CNNMoneys “Markets Now” streams live from the NYSE every Wednesday at 12:45 p.m. ET.
Investors need to think about taking a stake in utilities, and decreasing their financial investments in more volatile tech stocks, he said.
” Im not stating get out,” he said. More reputable stocks can secure investors from huge losses if the climate changes.
” Im not stating go out,” he stated. “I think that being out of the market is pretty dangerous today, and I believe it would be a mistake to raise cash.” More dependable stocks can protect investors from huge losses if the environment modifications.
Its time for investors to begin making more secure bets.
Marks likewise indicated the trade war with China as another factor for investors to tread thoroughly.
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Defense is the name of the game for a couple of factors.