Trade uncertainty and nagging inflation made Federal Reserve (Fed) Chair Jerome Powell walk a tightrope at the latest press conference.

Inconsistency seems to be the only constant since tariffs were first announced. The White House’s continuous change in direction on trade policy has weighed on business sentiment gauges and left investors with limited visibility to buy the dip.

Heightened volatility and uncertainty in both financial markets and the broader economy present challenges and opportunities for investors. Understanding the fundamental differences between the strategic and tactical investment horizons through which an investor can face these challenges and approach these opportunities is essential for navigating these complex environments.

Fourth quarter earnings season is nearly complete, and it has been a good one. S&P 500 companies grew profits more than 18% year over year, according to FactSet data, with mega cap technology and financial companies doing most of the heavy lifting (about seven points of growth came from each). The Magnificent Seven grew earnings by an average of 37% and financials earnings jumped 50%.