Core Insights - A new investment trend is emerging on Wall Street, focusing on stocks with significant real-world assets and low obsolescence risk, termed the Heavy Asset, Low Obsolescence strategy [2][3] - This strategy has gained traction as investors shift their focus from enterprise software companies to businesses with hard assets, such as refineries and airlines, which are perceived as less likely to be disrupted by AI technologies [2][4] Investment Strategy - The Heavy Asset, Low Obsolescence strategy is characterized by a preference for companies that rely on physical goods, infrastructure, or services, making them less vulnerable to technological disruption [4] - Examples of companies fitting this strategy include energy giants like Exxon, retailers such as Walmart, fast-food chains like McDonald's and Starbucks, and industrial firms like Caterpillar [4] Market Performance - The most popular energy fund, XLE, has increased by 23% year to date, while materials and consumer staples funds, XLB and XLP, have risen by 18% and 14% respectively [5] - In contrast, the iShare's Expanded Tech-Software Sector (IGV) has experienced a decline of 22% in value this year, highlighting the shift in investor sentiment [5]