Why it’s time for investors to go on defense

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    That is what Howard Marks, co-chairman of Oaktree Capital, instructed 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 Facet.”

    Traders ought to contemplate taking a stake in utilities, and reducing their investments in additional risky tech shares, he mentioned.

    Protection is the secret for a number of causes.

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

    “I am not saying get out,” he mentioned. “I believe that being out of the market is fairly harmful at this time, and I believe it could be a mistake to lift money.” However extra dependable shares can shield buyers from large losses if the local weather modifications.

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

    “We’ve got a commerce battle with China, it is 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.”

    CNNMoney's "Markets Now" streams live from the NYSE every Wednesday at 12:45 p.m. ET.
    “Markets Now” streams dwell 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.
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