Why it’s time for investors to go on defense

CNN
 — 

It’s time for buyers to begin making safer bets.

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

“Protection is extra vital 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 risky tech shares, he mentioned.

Protection is the secret for just a few 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 feel that being out of the market is fairly harmful at present, and I feel it will be a mistake to boost money.” However extra dependable shares can shield buyers from massive losses if the local weather adjustments.

Marks additionally pointed to the commerce conflict with China as another excuse for buyers to tread fastidiously.

“We now 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 severe penalties for the world financial system.”

“Markets Now” streams live from the New York Inventory Trade each Wednesday at 12:45 p.m. ET. Hosted by CNNMoney’s enterprise correspondents, the 15-minute program options incisive commentary from consultants.

You may watch “Markets Now” at CNNMoney.com/MarketsNow out of your desk or in your telephone or pill. For those who can’t catch the present reside, take a look at highlights on-line and thru the Markets Now e-newsletter, delivered to your inbox each afternoon.