It’s time for investors to start making safer bets.
That’s what Howard Marks, co-chairman of Oaktree Capital, told CNNMoney editor-in-chief Richard Quest on “Markets Now” on Wednesday.
“Defense is more important than offense” right now, said Marks, the author of “Mastering the Market Cycle: Getting the Odds on Your Side.”
Investors should consider taking a stake in utilities, and reduce their investments in more volatile tech stocks, he said.
Defense is the name of the game for a number of reasons.
Although stocks soared, Marks warned that we may be nearing the end of the bull cycle.
“I’m not saying go away,” he said. “I think being out of the market is pretty dangerous these days, and I think it would be a mistake to raise money.” But more reliable stocks can protect investors from big losses if the climate changes.
Marks also pointed to the trade war with China as another reason for investors to tread carefully.
“We have a trade war with China, it will probably be resolved, but it may fall apart,” he said. “And if it goes off the rails, it has very serious consequences for the world economy.”
![CNNMoney](https://media.cnn.com/api/v1/images/stellar/prod/181003112750-100318-markets-now-6.jpg?q=w_1110,c_fill)
“Markets Now” streams live from the New York Stock Exchange every Wednesday at 12:45 pm ET. Hosted by CNNMoney’s business correspondents, the 15-minute program features incisive commentary from experts.
You can watch “Markets Now” at CNNMoney.com/MarketsNow from your desktop or on your phone or tablet. If you can’t watch the show live, check out the highlights online and via the Markets Now newsletter, delivered to your inbox every afternoon.