From the floor of the New York Stock Exchange, Steve Alain Lawrence, CEO of Balfour Capital Group, shared his outlook on markets as the year approaches its final stretch. Lawrence emphasized that the period between now and December 31 is likely to be highly volatile, as investors who have performed well may take profits while broader market rotation accelerates. He noted a visible disconnect between Wall Street and Main Street, with lingering consumer fear despite resilient equity prices.
On inflation and Federal Reserve policy, Lawrence acknowledged that while recent PCE data suggests inflation is moderating, it remains embedded in market pricing. He highlighted energy as a critical long-term theme, pointing to massive future electricity demand driven by data centers, infrastructure build-outs, and global digitalization. This structural demand, he argued, supports higher energy prices over time. At the same time, weaker job creation and soft payroll data may push more individuals toward entrepreneurship, reshaping labor dynamics.
Addressing portfolio strategy, Lawrence stressed the importance of consistent diversification and dollar-cost averaging. He advised advisors and investors to maintain a long-term perspective rather than attempting to trade short-term market swings, noting that markets are increasingly global and complex, making precise forecasting difficult.
Looking at near-term opportunities over the next few weeks, Lawrence identified pharmaceuticals as an area experiencing meaningful rotation and renewed momentum. He also highlighted streaming and media-related names, alongside technology, as sectors with attractive upside potential.
On energy, Lawrence reaffirmed his bullish stance, stating that fossil fuels remain essential to the global economy. For 2026, he forecasts oil prices trading in a range between $65 and $80 per barrel, supported by sustained demand and structural supply dynamics.
Overall, Lawrence’s message was clear: expect volatility, stay diversified, focus on long-term fundamentals, and recognize energy’s enduring role in global markets.
