Howard Marks warns investors
Investors need to make safer bets.
On Wednesday, Howard Marks, the co-chairman and editor-at-large of CNNMoney, Richard Quest, said this to Richard Quest, CNNMoney's "Markets Now".
Marks, the writer of "Mastering the Market Cycle : Getting the Odds in Your Favor" said that "defense is more important than offensive" at this time.
He said that investors should take a stake in utility stocks and reduce their investments in volatile tech shares.
For a number of reasons, defense is the key to success.
Marks warns that despite the stock market's recent rise, we could be approaching the end of this bull cycle.
He said, "I don't say get out." I believe that to be out of the markets today is very dangerous, and it would be a big mistake to raise money. Stocks that are more reliable can help protect investors against big losses in the event of a climate change.
Marks also cited the trade war between China and the United States as a reason to be cautious for investors.
He said: "We are in a trade war with China. It's likely to be resolved, but could go off track." "And if the trade war with China goes off the rails it will have very serious consequences for world economic growth."
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