Wall Street suddenly shifts! Morgan Stanley and Goldman Sachs strongly recommend HALO assets

Gelonghui February 28 | Industry Disruption Triggered by AI (“AI Fear”) Forces Investors to Reassess Risks, with “Heavy Assets, Low Obsolescence” (HALO) Companies Becoming the New Favorite for Capital Hedging.

Morgan Stanley was the first to propose the HALO trading concept, constructing the HALO basket (MSXXHALO), which includes seven structural pillars: materials, utilities, railways, pipelines, waste management, defense, and signal towers, to hedge against technological iteration risks.

Goldman Sachs’s latest research report further confirms this trend. Under the triple pressures of rising interest rates, geopolitical fragmentation, and surging AI capital expenditure, the market is experiencing “scarcity re-pricing,” with tangible production capacity becoming a scarce resource. Goldman Sachs analysts point out that investors are no longer blindly chasing lightweight asset narratives; the market is beginning to reward hard-to-duplicate capacity, networks, and infrastructure.

So, what are the HALO assets in the A-share market? Recent secondary market trends have already provided a clear answer. Since February, the power sector has surged strongly, driven by the HALO trading logic and increased electricity demand from AI. Recently, core materials such as rare earths and small metals, driven by supply-demand relationships and AI demand, have also become key areas for capital deployment. Overall, A-share HALO assets focus on power, metals, utilities, and related fields, showing a “winner-takes-all” structural characteristic. This echoes the US stock market and confirms the global valuation re-evaluation trend of HALO assets. However, some leading A-share stocks are overvalued with poor performance, and excessive market enthusiasm may pose greater valuation risks than in the US!