5 Dow Stocks vs Treasuries
Continuing a 'stocks vs treasuries' theme, I picked five contenders from the 30 DJIA members for a run against the 10-year.
No surprise, the stocks are a better choice for many investors with a long time horizon who can stomach some volatility. If you've been following, this run was set up a little different than my other articles in this format. I was a little less conservative with the stock price appreciation assumptions and added a 'what if' showing how far each stock would have to fall before the 10-year would win - I assumed no dividend growth at all for that case.
After doing a couple of these, I'm finding the real value in a discounted cash flow isn't so much as a predictive tool but as a great way to compare cash streams and play 'what-if' games to help quantify risks for various investment options.
Thanks to fellow Fools anchak and rfaramir for comments with ideas for tweaks to the format.
As always, questions, comments or recommendations are welcome here or at the article.