Investors are being urged to consider shifting their investment strategies to more defensive ones in light of market volatility. Howard Marks, the co-chairman of Oaktree Capital, emphasized the importance of prioritizing defense over offense in the current market environment. As the author of “Mastering the Market Cycle: Getting the Odds on Your Side,” Marks advised investors to reevaluate their portfolios.
One key recommendation Marks offered was to consider investing in utilities while reducing exposure to more volatile technology stocks. This defensive approach is crucial, especially as there are concerns that the bull cycle in stocks may be reaching its peak. While Marks did not advocate for completely exiting the market, he cautioned against holding excessive cash, emphasizing the importance of protecting investments from potential downturns.
The ongoing trade war with China was another factor highlighted by Marks as a reason for caution. While he expressed optimism that a resolution could be reached, he acknowledged the significant impact that a escalation in the conflict could have on the global economy. Given these uncertainties, adopting a defensive posture in investment decisions can help mitigate risks.
“Markets Now,” a live streaming program from the New York Stock Exchange, provides valuable insights from financial experts like Marks. Hosted by CNNMoney’s business correspondents, the show offers expert commentary on market trends and developments. Viewers can access the program online or via mobile devices, making it convenient to stay informed about the latest market updates.
In today’s dynamic economic landscape, staying informed and adapting investment strategies accordingly is essential for safeguarding financial interests. By heeding advice from seasoned professionals like Marks and monitoring market conditions closely, investors can position themselves more effectively to navigate market volatility and make informed decisions. Embracing a defensive investment approach during uncertain times can help investors weather potential storms and preserve capital in the long run.