The challenge facing investors today isn't whether artificial intelligence will transform the economy, but how to maintain portfolio balance as the market climbs to new all-time highs. While it’s tempting to focus exclusively on companies that have performed well recently, investing for long-term goals requires a thoughtful approach to both growth and risk management.

For investors trying to understand the economy, recent reports have provided mixed signals, even leading President Trump to fire the Bureau of Labor Statistics commissioner. The latest jobs numbers showed weakness and negative revisions, but there are also signs that GDP growth rebounded in the second quarter. Corporate earnings continue to beat expectations, driving markets to new all-time highs, while tariffs and inflation remain concerns.

While investors always look to corporate earnings for clues about how businesses are performing, the current earnings season arguably carries greater importance due to tariffs. Although major stock market indices have reached new all-time highs as trade tensions have stabilized, there is still uncertainty as to how tariffs might affect consumers and businesses. Fortunately, new trade agreements are being announced, and corporations are reporting earnings that are beating expectations.