Investors are observing contradictory trends in financial markets as President Trump’s tariffs impact the real economy, yet the stock market continues to rise near record highs. Concerns of overvaluation and a possible market correction are growing among analysts and money managers, despite the ongoing optimism in the market.

The stock market appears to be diverging from the real economy, with signs of an economic slowdown including slowing job growth and a surge in wholesale inflation due to new taxes on imports. Consumer sentiment is being impacted, but the stock market is optimistic about future growth and earnings.

Economist Ed Yardeni believes that stock prices continue to rise due to the potential for Federal Reserve interest rate cuts, strong productivity growth, and the impact of digital advances on earnings growth. Despite concerns of a market correction, Yardeni forecasts a significant rise in the S&P by the end of the decade.

While a market correction may undermine Trump’s economic claims, it would not be unprecedented, and most investors would likely ride it out. Attempting to time market movements is considered a poor investing strategy, with rebalancing assets being a more prudent approach. The key advice is to invest wisely and focus on other concerns.

Read more at Yahoo Finance.: This week in Trumponomics: Everybody’s worried about stocks