Investors Are Piling Into the 'HALO' Trade. Here's What That Means and What They're Buying

Core Insights - The "HALO" trade, which stands for "heavy assets, low obsolescence," is gaining traction on Wall Street as investors shift focus from AI stocks to those considered AI-proof [1][1] - Major companies like ExxonMobil, McDonald's, and Walmart are highlighted as beneficiaries of this trend, showing significant stock price increases year-to-date [1][1] Investment Trends - The HALO trade reflects a broader strategy of hedging against potential disruptions caused by AI, with capital-intensive companies expected to outperform [1][1] - As of the latest data, ExxonMobil's shares have increased by approximately 25%, Walmart by 15%, and McDonald's by nearly 9% in 2026 [1][1] Market Performance - The energy, materials, and consumer staples sectors are currently among the best-performing areas of the market, contrasting with the technology sector, which is underperforming [1][1] - Nvidia, a key player in the AI sector, has seen its stock decline despite strong earnings, indicating a shift in investor sentiment [1][1] Analyst Insights - Goldman Sachs analysts predict continued stock outperformance for HALO companies, citing improved earnings momentum and returns on investment for capital-intensive firms [1][1] - The report emphasizes that markets are favoring tangible assets that are costly to replicate and less vulnerable to technological obsolescence [1][1]