The HALO Effect: Heavy Assets, Low Obsolescence in the AI Era

This analytical report explores the shift in equity leadership towards Capital Intensive assets amid rising real yields and geopolitical fragmentation. It highlights the performance of HALO businesses—those with substantial physical capital and low obsolescence—against Capital Light sectors, emphasizing the narrowing valuation gap and macroeconomic tailwinds supporting this trend. The report also examines the impact of AI on traditional business models and the unprecedented capital expenditures