Some Investing Wisdom From The Roman Poet Horace

At about 2:30 in the afternoon, today, July 1st, I took a look at my Seeking Alpha screen of the stocks that I follow and noticed that every single company I follow is up 1% or 2%:

alphascreen

Personally, I get ticked off seeing prices rise like this. If you are a net buyer of stocks (and that is the key term), then you should not be happy seeing these price increases because these companies are becoming less and less attractive. For every dollar of profit and dividends that ConocoPhillips generates, you have to pay 1.37% more today than you did on Friday. Today, you have to pay 1.82% more for each dollar of profits and dividends that Emerson Electric generates than you did on Friday. Sure, if you are planning to sell those companies, this is good news. But if you are planning to buy stocks, you should hate this crap because it means stocks are getting more expensive, and represent lower risk-adjusted returns going forward than they did on Friday.

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Originally posted 2013-07-01 14:33:35.