NOW & Dow
The Now 50 Rebuttal

By Paul Larson (TMF Parlay)

( January 5, 2000 ) -- Rick, you're so old fashioned!

Regarding the valuation differences between the two indices in question here, there are many reasons why the companies in the NOW 50 generally carry higher price tags than those in the Dow 30. Could it be some investors are looking at the potential many of these new-era companies have for achieving extremely high returns on their assets? Perhaps it is the higher growth the NOW 50 companies tend to have? Or, maybe it is that the industries represented in the NOW 50 have much brighter futures than those generally found in the Dow?

Whatever the reason, I think the old saying "You get what you pay for" certainly applies here. The valuations may be a bit steeper in the NOW 50, but that's also because the business quality of the companies in the index tend to be a bit higher, too.

Do the Dow companies tend to have higher dividend payouts? Absolutely. However, I don't know of a single investor who would prefer meager dividends over some solid capital gains.

Will investing in old-world, capital-intensive, minimal-growth, err... I mean, investing in "value" stocks come back in style in 2000? Got me. Personally, I'd much rather trust my money to the companies that have both a proven track record as well as bright futures ahead, such as those that populate the NOW 50 index.

The Dow Rebuttal »

 This Week's Duel

  • Introduction
  • NOW 50 Argument
  • The Dow Argument
  • The Now 50 Rebuttal
  • The Dow Rebuttal
  • Vote Results
  • Flashback: Amazon.com

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  • The NOW 50 Index
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