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Why it’s time for investors to go on defense

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That’s what Howard Marks, co-chairman of Oaktree Capital, advised CNNMoney editor-at-large Richard Quest on “Markets Now” on Wednesday.

“Defense is more important than offense” proper now, stated Marks, the creator of “Mastering the Market Cycle: Getting the Odds on Your Side.”

Investors ought to contemplate taking a stake in utilities, and lowering their investments in additional unstable tech shares, he stated.

Defense is the secret for a number of causes.

Though shares have been hovering, Marks warned that we could also be nearing the tip of the bull cycle.

“I’m not saying get out,” he stated. “I think that being out of the market is pretty dangerous today, and I think it would be a mistake to raise cash.” But extra dependable shares can shield investors from large losses if the local weather adjustments.

Marks additionally pointed to the commerce struggle with China as one more reason for investors to tread fastidiously.

“We have a trade battle with China, it’s probably going to get solved, but it may go off the rails,” he stated. “And if it goes off the rails, it has very serious consequences for the world economy.”

“Markets Now” streams live from the New York Stock Exchange each Wednesday at 12:45 p.m. ET. Hosted by CNNMoney’s enterprise correspondents, the 15-minute program options incisive commentary from consultants.
You can watch “Markets Now” at CNNMoney.com/MarketsNow out of your desk or on your telephone or pill. If you’ll be able to’t catch the present dwell, try highlights on-line and thru the Markets Now publication, delivered to your inbox each afternoon.

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