Recently, the 'HALO' trading strategy has quietly gained popularity on Wall Street.
Top investment banks such as Goldman Sachs, Morgan Stanley, and Bank of America pointed out:As the replicability of AI products continues to increase, the market is gradually shifting its focus to 'hard-to-replicate physical assets' such as power grids, energy pipelines, core infrastructure, and long-term production capacity, and is re-evaluating and pricing them.
So,What exactly is the 'HALO' trade that's highly sought after by Wall Street? And what are the key investment targets investors should pay attention to?Next, this article will provide an in-depth breakdown for fellow investors.
What is HALO?
HALO stands for 'Heavy Assets, Low Obsolescence,' a concept now widely adopted by several Wall Street investment banks, including Morgan Stanley, Goldman Sachs, and JPMorgan.
1. Heavy Assets
The business model is built on a vast base of physical capital, creating high replication barriers—such as costs, regulation, construction time, engineering complexity, or network integration difficulty. Typical screening dimensions include six core indicators: tangible asset intensity, fixed asset intensity, and capital expenditure intensity.
2. Low Obsolescence
These types of assets possess long-term resilience that can endure across technological cycles, making them difficult to be easily phased out by technological iteration.Their core characteristic lies in 'extremely long replacement cycles': economic value does not...