Though stocks have been soaring, Marks alerted that we might be nearing the end of the bull cycle.
Marks likewise pointed to the trade war with China as another factor for investors to tread carefully.
Thats what Howard Marks, co-chairman of Oaktree Capital, informed 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.
” We have a trade fight with China, its most likely going to get fixed, however it might go off the rails,” he stated. “And if it goes off the rails, it has extremely severe consequences for the world economy.”.
Investors must think about taking a stake in utilities, and reducing their investments in more unstable tech stocks, he stated.
” Im not stating get out,” he said. “I think that being out of the marketplace is pretty harmful today, and I think it would be an error to raise money.” However more reliable stocks can protect investors from huge losses if the climate changes.
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” Im not saying get out,” he stated. More reliable stocks can protect investors from big losses if the environment changes.
” Defense is more vital than offense” right now, stated Marks, the author of “Mastering the Market Cycle: Getting the Odds on Your Side.”.
” Markets Now” streams live from the New York Stock Exchange every Wednesday at 12:45 p.m. ET. Hosted by CNNMoneys organization correspondents, the 15-minute program functions incisive commentary from experts.
Defense is the name of the game for a couple of factors.
Its time for financiers to start making more secure bets.