To the speculator and day trader, rising markets are a form of euphoria that generate excitement and further speculation. Markets that rise give the feeling that one is wealthier, regardless of the paper nature of the profits or the underlying business value, which may not have increased at an equivalent rate.
Conservative investors who look for safe and sustainable high-dividend yields in order to produce income have a different view on rising market. A rising market makes dividends more expensive. As general securities prices increase, a larger increase is required in an underlying dividend just to maintain parity...
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