The opinions in the news are constantly trying to find a reason for the market making its volatile daily moves, with news like the tariff changes being used as a reason for the market in different directions on different days. We think the world is really more complicated than that, and trying to assign the moves in the stock market to a single event actually adds to the confusion. The bottom line to the stock market is all about earnings, and the market strength of the past two years was in anticipation of the improving earnings picture that was expected by most observers to be seen this year. Many fundamental valuation measures have moved above the longer-term averages, and now we see the stock market stalling for several quarters as the fundamentals catch up to the higher stock prices. During this time, the noise of the short-term news and opinions could keep the daily volatility higher than normal, which may make following the market on a daily basis a more stressful exercise. We think it is important to recognize that the short-term and long-term market trends are different things, and to be careful not to allow the daily headlines to derail long-term plans.
 

- Bob Dickey, Technical Strategist, RBC Wealth Management U.S.