 Good day fellow investors! Now I have been saying that an all-weather portfolio will be the best strategy for 2018 and onwards, especially at these market levels. I have discussed gold mining stocks, I have discussed some way of hedging, I will be talking more about commodities, emerging markets, China, Brazil and all what fits an all-weather portfolio, but today I want to discuss blue chip stocks. As we are talking about an all-weather strategy, blue chips are a core part of such a strategy. What is important to look at is at the risk reward. So today we're going to discuss five blue chips, quickly analyze their risk and reward in order to see how those will best fit your portfolio. Let's start! The first company I want to discuss is ExxonMobil, of course the biggest global oil producer. And what's very interesting about Exxon is that the stock price was very stable during the last three years, even due to the high volatility of oil prices. What is interesting is that Exxon has now a 3.5% dividend yield, very stable, very sustainable, which could only get higher if oil prices continue to increase. So I would say that downside for such a company with such a strong low-cost production with strong dividend with high cash flows is let's say 50%. So when you look at your portfolio you can say, okay ExxonMobil can fall 50%, but it gives me a dividend of 4%, which would then be 8% if it falls 50%. Let's look at other blue chip stocks to see if there is a better risk reward balance. Target is another blue chip that has a price to earnings ratio of 15, pays a dividend of 3.76%, but the stock price has been much more volatile than Exxon's in the last few years. However, the price to cash flow rate is very good at 7.6%. The issues with Target are of course fear of Amazon competition. And that's what depressed the price, the revenues are stable, a little bit declining, so it's a difficult environment to be in. However, there is a strong dividend, there are strong cash flows, there is the brand, there is the geographical distribution, there are a lot of things that won't be disrupted that quickly. Therefore, there is some value in Target. The price to earnings ratio is 15, which is much lower than the market. As for the risk, I would say if there is if really everything turns online, then the risk is huge. And that is also against something that has to be applied to Target. There is no growth, so the maximum what you can expect is what you have now. The third company I want to talk is Amazon Electric. This is completely different than the previous two stocks, because the price to earnings ratio is around 27, which is very, very high and implies an earnings yield of just 3%. Amazon is, as the other stocks were, a company that has no growth in revenue, no growth in earnings, but the price to earnings ratio just went higher, higher and higher. Given the high valuation, the downside for Amazon is extremely high. Because if treasuries go from the current 2% to 4%, then the required dividend for Amazon would be 6%. And then the required stock price would fall to 43% from the current 71%. You think that's too low? Well, in 2009, the stock price was at 26%. So it's all about valuations with such a company that has stable revenues and stable earnings. I think Amazon is the riskiest stock I have discussed now. The sentiment is positive now, but if you look at the 10-year chart, you can see that the sentiment is very, very volatile. So better look at Amazon when the stock price is closer to 40, as it has been 3 times in the last 10 years. I bet you it will be again. Walgreen's Boot Alliance is a blue chip that, unlike the above, has managed to double its revenue in the last 10 years, which makes it a growth blue chip. Earnings have also doubled, and the dividend yield is just 2.30%, but the payout ratio is 40%, which leaves plenty of money for more growth. The price-to-earnings ratio is 20, which implies an earnings yield of 5%. However, if they double their earnings in their next 10 years, then the future earnings yield will be 10%, and so on and so on, but potentially increasing the stock price. The fear here that keeps the stock subdued is again Amazon, and what happens if Amazon enters the pharmaceutical business? Well, perhaps Amazon will buy out Walgreen's. You never know, but it is a possibility. However, this is again a different stock. An average price-to-earnings ratio of 20, but there is growth and there is a dividend, and the risks are the same as what we have discussed with the stocks before. So again, a different conception the market has about blue chip stocks, which is very, very interesting. Of the stocks we discussed, I would if I had to invest in Walgreen's before the other stocks. The fifth company I want to discuss is Boeing. Of course, sentiment now for Boeing is extremely positive. The stock has doubled in the last year. It has been the best performer of the S&P 500, and it's almost a 10 beggar from 2009. It's incredible what happened to both. However, revenues have grown only 50% in the last 10 years, and the current strong earnings and the current strong dividend and best dividend increases are just a small margin increase. Everything looks perfect, emerging markets are about to grow, demand for planes looks very strong, and everybody's very, very excited about Boeing, which could be a good thing and good things could happen. But at this level, the return yield with a price earnings ratio of almost 40 will be 3%. There is no way Boeing manages to keep these gross margins and net profit margins. So 3% return on investment is something extremely risky. As we know, the economy is always cyclical, and everything is cyclical. Even the air industry will hit market saturation because the number of planes will grow at a faster rate than the market. And then Boeing will see some cancellation, will see some losses, and then the stock price would drop extremely much, especially from this high level. Let's say earnings drop to the average from the last 10 years, which is about $6 at a price earnings ratio of 15, then the stock price would be 90, which implies a 70% decline. That's the risk for Boeing for a 3% return on investment in the long term. Extremely risky, and that shows how the market has a completely different perception about blue chips. I think that is because it's all about sentiment now. Really few invest in fundamentals. They have seen Boeing's stock shoot up like a plane, they have seen Boeing's stocks take off like a plane, and everybody wants in because the sentiment is strong. When the sentiment is negative, everybody wants out, and that's what happened to Walgreens during 2017. Now it has recovered. But if you take advantage of that sentiment, make a good fundamental analysis, you will do extremely well with less risk over time. We'll be discussing more blue chips as it is a very interesting topic. I really want to find low risk, high return blue chips. I think I'll find them to a little bit diversify an old weather portfolio. Thank you for watching. Looking forward to your comments, and I'll see you in the next video.