It’s time for traders to begin making safer bets.
That’s what Howard Marks, co-chairman of Oaktree Capital, advised CNNMoney editor-at-large Richard Quest on “Markets Now” on Wednesday.
“Protection is extra necessary than offense” proper now, mentioned Marks, the creator of “Mastering the Market Cycle: Getting the Odds on Your Aspect.”
Traders ought to contemplate taking a stake in utilities, and lowering their investments in additional unstable tech shares, he mentioned.
Protection is the secret for a couple of causes.
Although shares have been hovering, Marks warned that we could also be nearing the top of the bull cycle.
“I’m not saying get out,” he mentioned. “I believe that being out of the market is fairly harmful immediately, and I believe it might be a mistake to lift money.” However extra dependable shares can shield traders from massive losses if the local weather modifications.
Marks additionally pointed to the commerce conflict with China as another excuse for traders to tread rigorously.
“Now we have a commerce battle with China, it’s in all probability going to get solved, however it could go off the rails,” he mentioned. “And if it goes off the rails, it has very critical penalties for the world financial system.”
“Markets Now” streams reside from the New York Inventory Alternate each Wednesday at 12:45 p.m. ET. Hosted by CNNMoney’s enterprise correspondents, the 15-minute program options incisive commentary from specialists.
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