Why it’s time for investors to go on the defense

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Its time for financiers to begin making safer bets.

PICTURE: CNN.

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

(CNNMoney)–.

Defense is the name of the game for a couple of factors.

” Im not saying get out,” he said. More reliable stocks can safeguard investors from huge losses if the environment changes.

” Im not stating go out,” he stated. “I think that being out of the market is quite hazardous today, and I believe it would be an error to raise money.” However more trusted stocks can secure investors from huge losses if the environment changes.

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Stocks have been soaring, Marks cautioned that we may be nearing the end of the bull cycle.

” We have a trade battle with China, its most likely going to get fixed, but it may go off the rails,” he said. “And if it goes off the rails, it has really major repercussions for the world economy.”.

Investors ought to think about taking a stake in utilities, and decreasing their investments in more unpredictable tech stocks, he said.

” Defense is more crucial than offense” right now, stated Marks, the author of “Mastering the marketplace Cycle: Getting the Odds on Your Side.”.

Marks also pointed to the trade war with China as another factor for investors to tread carefully.

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