The best attack is defense

The past week has just proven to us, if it is still necessary, all the virtues of defensive values. While the world is shaken by the Arab revolutions and the natural disasters in Japan, while oil shows significant volatility in an upward trend, our securities, thanks to their defensive nature and their dividends, are weathering the storm peacefully. Not only are the values of our portfolio do not show sensitivity to these events, but they also progress over the week.

There performance of  portfolio thus regains some color, both in CHF and in EUR, while The market has left a lot of feathers in the storm. In the single currency, our profitability is now again higher than that of the market, with obviously lower volatility, and therefore a Sharpe ratio also better than the market, which corresponds to our objectives. With the Swiss franc as a reference currency, we are still subject to the safe haven role of the CHF, but our profitability is no longer very far from that of the SMI.

In the stock market, attack is very rarely the best defense. Let us recall the internet bubble and the real estate bubble. Betting on defense is often more profitable in the long term.

Our values have not been in great demand lately. We were already talking about it in January. However Since the end of February our stocks have outperformed the S&P 500, thus breaking a negative trend compared to the market that began last September.

In addition, we returned to full dividend season, thus increasing the income generated by our portfolio. We are well on our way to reaching a 4th consecutive quarter of revenue increase, helped by the growth of distributions from each position but also by our purchase of Coca-Cola.