Markets Price Out Worst-Case Risk, But Energy to Stay Higher for Longer: Matt Orton

• Matt Orton, Chief Market Strategist at Raymond James Investment, notes markets are pricing out worst-case geopolitical risks.
• Uncertainty around a US-Iran deal and the Strait of Hormuz reopening could keep near-term volatility elevated; next 2-3 weeks are critical.
• Energy prices are expected to remain "higher for longer" due to supply disruptions and logistical frictions.
• Inflation risks may limit central banks' ability to ease monetary policy, making Orton cautious on broader markets.
• Orton favors energy assets for their earnings visibility, as oil prices are unlikely to return to pre-conflict levels soon.