The battle lines have been drawn – a labor market that added 222,000 jobs during June and an average of 193,000 over the past three months along with an aggregate low double-digit growth in corporate earnings against a Fed that will most likely become more and more comfortable withdrawing monetary stimulus (interest rate increases and bond sales). Presently, we are happy with where this puts equities as we have stated for years that we believe the Fed will remain accommodative for longer than the market gives it credit. Despite the trials and tribulations of the Trump Administration and congress, the economy looks on sound footing and investors are no longer sitting on pins and needles wondering what is going to come out of Washington. There are some global sticking points (North Korea) that remain a concern which should keep a lid somewhat on the market. We have noted continually that there remains an upside bias and the downside appears somewhat limited. We see no reason to alter this posture. These should at least provide support around these levels with the potential for an upside breakout. Diversification is always prudent. In addition until this upward trend is broken in a meaningful way it is difficult to envision a bear market with this earnings support. Furthermore, should President Trump make some headway on tax and/or healthcare reform, stocks could head higher. For now, we continue to be tilted toward the optimistic side. Stay diversified. There is no need to be a hero. Your portfolio must be measured against your long-term objectives. Do not be caught up in the day-to-day noise of the markets.