SEI - Quarterly economic outlook: Change is the only constant.

By: Art Patten, CFA, Client Portfolio Strategist

Read the full commentary here.

Sometimes, it seems, the only constant in this world is change. It would certainly be understandable for investors to feel that way at the midpoint of 2026. The halting progress toward a diplomatic resolution between Iran and the U.S. (which would allow shipping traffic through the Strait of Hormuz to fully recover) has occupied front-page headlines, as have the eye-watering levels of corporate investment in artificial intelligence (AI). 

Headlines have also focused on consequential shifts in areas such as military spending, central bank dynamics, exchange rates, capital markets, inflation, supply chains, weather patterns, and demographics. These shifts have unfolded at different speeds along a variety of timeframes. Some have brought us to historically unusual places and upended status quos, while others have allowed for continuity. Ultimately, the sum of these conditions may mean a variety of things for economies and markets—and inform how investors should engage with the current environment.