Dueling Fools
August 05, 1998
I SPY a Duel
Spiders Price (8/4/98): $107
Little Miss Muffet was scared of Spiders <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: SPY)") else Response.Write("(AMEX: SPY)") end if %>, are you? These little critters, which mimic the S&P 500, have been a great indexing tool for those with idle cash who still want market exposure. (For more information on Spiders, check out this collection.)
Then again, maybe you're a bit more disgusted by curds and whey. Ultimately, to talk about Spiders (also known as Standard and Poor's Depositary Receipts) is to talk about the S&P 500 is to talk about the Duel to end all Duels -- Is the market overvalued?
This week we bring you SPY vs. SPY. Jeff Fischer (TMF Jeff) is bullish on the Spiders while Paul Larson (TMF Parlay) has a little arachnophobia. What, me worry? Check your own market barometers and come on in.
This week we also introduce the Duel Flashback, a look back at an earlier Duel subject to see how the stock has done since the Duel. This week we look back at Yahoo!
You Get to Vote!
Once you've read the arguments and the rebuttals, it's your time to cast your vote. We'll tabulate results each week and revisit them from time to time to see whether you were right! As always, we invite you to join us in the Dueling Fools Message board to continue the duel.
[Any suggestions, comments, praise, or flames, please send them along to the Dueling Fools Team.]
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The Bull... On a hot afternoon in the desert, my opponent will emerge before me with swords swinging from all arms. (Any creature who disfavors the S&P is no man with merely two arms, but instead is a beast with several, all of them deformed). This humanoid will be strangely confident, giant, and most of all, wisely dark under the eyes and foaming from a permanent frown. In a dark suit and tie, the creature will stand with all upper limbs twirling in the still of the afternoon, giant blades humming through the air. Next, he'll begin to yell. Continue... |
The Bear... This duel may actually be one of the hardest for this Fool to write. Why? Because I am as passionate as one can get about investing in stocks, and I absolutely love the "Spiders" as an easy and low-cost way for average investors to buy into the market. It's also standard knowledge among our Motley writers that historically the stock market's average appreciation has been around 12-13% annually. We all know here at the Fool that four out of every five years the market will end the year higher than it started. Furthermore, stocks generally outperform all other asset classes over the long term, bar none. Sounds all good and dandy, right? Continue... |
Results for last week's MacDonald's Duel
| Answer | Percentage |
| I can't make up my mind | 5% |
| TMF RFK's Bull argument |
50% |
| TMF Edible's Bear argument |
34% |
| They were both excellent |
7% |
| They were both lame |
4% |