While diversifying your portfolio and creating balance is important, holding high-quality outperforming stocks is also a great idea. The market always has a few names that not only perform well during the uptrend, but also manage to cushion from volatility and losses during a down cycle.

Of course, such characteristics are hard, if not impossible, to find anywhere in the crypto market. The asset class needs much more time to mature and stabilize before it can deliver reliability during a slump. But one obvious pick still qualifies.

With that said, here are the outperforming stocks and cryptos I’m watching right now.

Apple (AAPL)

Apple (NASDAQ:AAPL) is arguably the most high-quality stock in the market, and is typically the largest holding of many asset management companies. It is hard to be in the red when holding Apple, and most investors are likely in the green, unless they are the unlucky ones to buy this stock right at its peak (and sell when it declines).

This year, AAPL stock has posted incredible results, gaining 38.8% over the past 12 months. That’s outperformed the S&P 500 index, which gained only 8.7% over the same time frame. The company’s financials have been consistently in the green, and although there are some periods where sales or profits may decline, the company’s immense pricing power and brand value guarantees that there’s nothing to worry about in the long-run.

Analysts expect Apple’s sales growth to rebound in a big way next year. The tech giant is expected to see 6.4% revenue growth and an expansion of earrings per share by 61 cents in 2024. The market is currently pricing in upside of just 5.7% over the next year, primarily due to the recent steep increase in the price of AAPL stock. However, current estimates still suggest Apple is a long-term buy, and I remain in this camp.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) is a tech behemoth that continues to fire on all cylinders. Much like Apple, Microsoft has been an investment that’s stood the test of time. Indeed, investors who have stuck with Microsoft over the long-term have outperformed.

This is a company that’s outperformed most of its peers of late, thanks to the surge in interest around artificial intelligence. The company’s latest foray into AI and its integration with the Bing search engine has caused a 31% gain year-to-date. Meanwhile, Microsoft has been slowly increasing its dominance in the cloud computing and quantum comping sectors. The latter is what I expect to be the next hot thing, after the AI and cloud computing craze dies down a bit.

Regardless, Microsoft has a stake in almost every hot tech-related sector, and can heavily-capitalize on the current and future trends in the tech industry. The company’s top-line growth has consistently been expanding at a double-digit clip and has stayed positive, even in this tough environment. Profits have also bounced back from two-quarters of decline, increasing by 9.4% in the March quarter.

Ethereum (ETH-USD)

Unlike the stocks I’ve mentioned above, Ethereum (ETH-USD) is either thriving, or in a state of turmoil, due to its cyclical nature. If you invest in crypto, there will always be periods where the asset goes on a tear or loses a third of its value in a flash crash. But if we’re speaking of assets that do outperform in their own niche, Ethereum is certainly a top pick to consider.

Ethereum has outperformed Bitcoin (BTC-USD) in every cycle since its inception. I believe that trend is likely to continue, as the Ethereum blockchain has been capitalizing on up-and-coming Web3 applications, driven by its early adoption of smart contract technology. On the other hand, Bitcoin is indeed safer since it is much more decentralized. However, the blockchain is aging and lacks the tech needed to support the new Web3-centered crypto industry.

Thus, Ethereum is the best crypto to buy in my opinion, for investors seeking outperformance alongside relative stability in this sector.

On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.