It’s time for traders to start off earning safer bets.
Which is what Howard Marks, co-chairman of Oaktree Cash, explained to CNNMoney editor-at-big Richard Quest on “Markets Now” on Wednesday.
“Defense is extra essential than offense” suitable now, stated Marks, the author of “Mastering the Sector Cycle: Finding the Odds on Your Aspect.”
Buyers ought to look at having a stake in utilities, and decreasing their investments in much more unstable tech stocks, he reported.
Defense is the identify of the sport for a couple of explanations.
Although shares have been soaring, Marks warned that we may be nearing the conclude of the bull cycle.
“I’m not stating get out,” he reported. “I assume that staying out of the market is pretty risky now, and I think it would be a oversight to raise hard cash.” But a lot more responsible stocks can guard buyers from big losses if the weather improvements.
Marks also pointed to the trade war with China as another explanation for buyers to tread meticulously.
“We have a trade fight with China, it is probably going to get solved, but it may possibly go off the rails,” he mentioned. “And if it goes off the rails, it has extremely major consequences for the earth financial system.”
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