The negotiation week promises to be very interesting. The clues and scholarship holders have reached new heights of all time, while and slightly late.
Investors wonder if they too will beat their files during this week. What is certain is that to push higher stock markets, fuel is necessary, and this could come from upcoming events.
One of them will be the president of Jerome Powell, scheduled for Tuesday at 2:30 p.m. on Tuesday.
However, it is unlikely that the president of the federal reserve will be the only one to give the markets a decisive boost, as he was careful enough to provide favorable advice on interest rates recently.
Instead, a real boost could come from the profits season, in particular the quarterly reports of certain large companies that should publish results on Wednesday: Alphabet (Nasdaq :), Tesla (Nasdaq 🙂 and international commercial machines (Nyse :).
Regarding the construction of a well -balanced portfolio, finding the right balance between growth and resilience is not an easy task. But two actions – Alphabet and IBM – are as a convincing duo that could help find this balance.
These two offer complementary forces:
Alphabet offers high growth, solid efficiency and high active yields compared to the market. It is an excellent choice if you are targeting long -term outperformance and you can be a little more volatility. IBM plays a different role. It leads to lower volatility and less deep withdrawals at the table, making it a solid candidate to diversify and stabilize your wallet.
In this analysis, I will guide you through the way these two actions work in terms of annualized yields, risk, efficiency ratios and active yields.
Let’s dive.
1. Alphabet: always pretty appreciated
The figure below illustrates the performances of alphabet, which has experienced a TCAC of 17.2% in the last 20 years, with a standard deviation-reflecting the risk or volatility of prices, on 27.4%. The biggest withdrawal occurred during the 2008 crisis, with a drop by -60%.
The efficiency of the stock, measured by Sharpe and the trio ratios (excluding risk -free yield), is …
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