New research by Goldman Sachs may be of interest to people investment planning in Cheshire or Oswestry. It found that investors are focusing on stocks immune to disruption. The new buzzword is ‘Halo’, which is an acronym for heavy-asset low-obsolescence companies.
Interest in Halo stocks has increased as investors target companies that generate productive, tangible assets immune to AI disruption. These are driving both EU and UK stock markets to record highs. Examples have included sectors such as energy or transport infrastructure, and more specifically projects relating to grids, pipelines and critical machinery.
Goldman Sachs said that corporates are moving back towards physical assets, with the FTSE 100 notching up record highs so far in 2026. The Blue-Chip Index is filled with old economy companies, reaping the benefits of ‘Halo inflows’, and February saw its strongest performance since November 2022.
Whilst infrastructure and utilities aren’t necessarily glamorous, they are an attractive proposition for people looking for reliable returns on essential services. These also include shipping, industrials, materials and other areas that have been termed ‘real world’ enterprises. Senior Swissquote analyst Ipek Ozkardeskaya said there was supporting evidence of investors looking longer term, gravitating towards businesses offering tangible infrastructure.
This comes at a time when software and data companies are coming under pressure, with existing revenue models increasingly challenged by AI providers. Indeed, last week Citrini Research spooked the markets with a new report highlighting the potential impact of AI on US stocks and unemployment figures. Against this backdrop, asset ‘intensity’ is now perceived by many investors as a primary driver of enticing valuations and returns.
