Why it’s time for investors to go on protection

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CNN
 — 

It’s time for traders to start earning safer bets.

That is what Howard Marks, co-chairman of Oaktree Cash, advised CNNMoney editor-at-big Richard Quest on “Markets Now” on Wednesday.

“Defense is additional essential than offense” proper now, stated Marks, the author of “Mastering the Sector Cycle: Getting the Odds on Your Aspect.”

Buyers should really take into account taking a stake in utilities, and lowering their investments in far more unstable tech stocks, he claimed.

Protection is the name of the video game for a couple of factors.

Even though stocks have been soaring, Marks warned that we may be nearing the conclusion of the bull cycle.

“I’m not expressing get out,” he claimed. “I feel that getting out of the sector is really harmful now, and I imagine it would be a oversight to increase money.” But additional reputable shares can guard buyers from big losses if the local climate changes.

Marks also pointed to the trade war with China as yet another cause for investors to tread carefully.

“We have a trade struggle with China, it’s likely going to get solved, but it could go off the rails,” he claimed. “And if it goes off the rails, it has extremely significant penalties for the entire world economic climate.”

CNNMoney's

“Markets Now” streams reside from the New York Inventory Exchange each Wednesday at 12:45 p.m. ET. Hosted by CNNMoney’s small business correspondents, the 15-moment method options incisive commentary from industry experts.

You can look at “Markets Now” at CNNMoney.com/MarketsNow from your desk or on your cell phone or tablet. If you just can’t catch the display stay, check out highlights on the net and by means of the Markets Now publication, delivered to your inbox each and every afternoon.

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