The new anti-AI trade sweeping Wall Street: 'HALO'

Investors Eye HALO Strategy as Wall Street Seeks Safer Bets Amid AI Market Shifts

Think of investing like picking a team for a tug-of-war. You want strong, dependable players who won’t get pulled away by the latest trends. Right now, Wall Street is cheering for “HALO” stocks—companies that own big, sturdy things like pipelines and power grids—because they’re less likely to be replaced by new technology like artificial intelligence (AI).

What Are HALO Stocks?

HALO stands for “Heavy Assets, Low Obsolescence.” That means these companies own lots of real, hard-to-replace stuff, and it’s hard for technology to make them useless. For example, it’s tough to imagine AI replacing oil pipelines or factories overnight.

Why Investors Care

Investors are paying attention because HALO stocks are performing better than many tech companies this year. While some big tech names have struggled, old-school companies in energy, materials, and consumer staples are rising. According to CNBC, energy stocks are up over 23% and materials are up 15%—much better than the overall market. Meanwhile, software stocks have dropped more than 22% this year.

Bull Case: Why HALO Stocks Look Good

  • Stability: These companies own things that are hard to replace, so they’re less at risk from AI disruption.
  • Better Profits: Some experts believe AI might actually help HALO companies run more efficiently and make more money.
  • Market Rotation: Investors are moving away from risky tech and toward safer, “old economy” companies.
  • Historical Value: Research from Goldman Sachs shows that HALO stocks have outperformed lighter, tech-focused stocks by 35% since 2025 (Goldman Sachs).
  • Room to Grow: After years of underperformance, these stocks may have more upside as investors look for safer bets.

Bear Case: Risks and Weaknesses

  • Market Panic: Some experts worry that recent selling has been too extreme, and tech stocks may bounce back soon.
  • Tech Isn’t Dead: Technology stocks are now as cheap as consumer staples, so they may not be as risky as people think.
  • Changing Stories: If the story about AI changes, or if tech companies solve their problems, investors might rush back to tech stocks.
  • Economic Shifts: If the economy slows down or interest rates rise, even HALO stocks could face problems.
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Examples of HALO Winners

  • Apple: One of only two “Magnificent Seven” tech giants to rise this year. Investors hope Apple’s work with AI will boost its stock.
  • Chevron: The oil and gas company is up over 20% this year, helped by higher demand and expert upgrades.
  • Consumer Staples: Everyday goods companies, like food and household products, are also doing well as people stick to basics.

Historical Context and Data

This isn’t the first time investors have shifted away from tech. After the dot-com bubble burst in 2000, money moved into safer sectors like energy and materials. According to Morningstar, these sectors outperformed tech for years after that crash. Today, we see a similar pattern as people worry about tech’s future and look for safety in real assets.

Investor Takeaway

  • Check Your Portfolio: Make sure you’re not too heavy in tech. Consider adding some HALO stocks for stability.
  • Look for Value: Sectors like energy, materials, and consumer staples may offer better returns right now.
  • Don’t Count Tech Out: Tech stocks are cheaper than before. Keep an eye on them in case they rebound.
  • Stay Balanced: Markets shift quickly. Spread your bets across different types of companies to lower your risk.
  • Watch the AI Story: Pay attention to how AI is changing businesses—both old and new could find ways to win.

For the full original report, see CNBC

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