The Nasdaq Composite's (^IXIC 1.45%) performance in 2013 beat the Dow Jones Industrial Average (^DJI 0.52%) by 37% to 27%. But most of the gains were due to multiple expansion, and now the Nasdaq's average P/E ratio is 24 to just 16 on the Dow.
Investors looking for value in an economy that's growing at a snail's pace should look to the Dow for better options. In fact, value is why the Dow will outperform the Nasdaq this year.
In the video below, Motley Fool contributor Travis Hoium highlights why Verizon (VZ 3.21%), Microsoft (MSFT 1.43%), and Cisco (CSCO 0.46%) provide the kind of value and competitive moat that investors should be looking for in 2014.
