After more than a decade of under‑investment (particularly in Europe), Goldman Sachs Research analysts believe that higher real yields, geopolitical fragmentation, and supply chain rewiring have shifted equity leadership back toward tangible productive assets. They introduce the “HALO” framework—Heavy Assets, Low Obsolescence—to identify companies that are less exposed to technological obsolescence.
The HALO effect: Heavy Assets, Low Obsolescence in the AI era
Goldman Sachs
Peter Oppenheimer
Research
19 Pages
Key Takeaways
Repricing Scarcity: Higher real yields, geopolitical fragmentation and supply chain rewiring have shifted equity leadership back toward tangible productive assets. Markets are rewarding capacity, networks, infrastructure and engineering complexity.
Focus on HALO: Heavy Assets, Low Obsolescence: HALO businesses pair substantial physical capital (barriers to replication via cost, regulation, time to build or engineering complexity) with long-lived economic relevance.
Valuation Convergence: The valuation gap between Capital Intensive and Capital Light has narrowed sharply. The two baskets now trade almost in line as investors reprice resilience and the strategic value of real economy assets.
Join our newsletter to have all of this content + Exclusive Newsletter Bonus Content delivered to your inbox every week
