AI Stocks: The HALO Trade As A Hedge Against The AI Sell-Off
After investors spent years pouring money into AI stocks, the newly coined "HALO" trade is gaining credence on Wall Street, as a hedge against the impact artificial intelligence is broadly projected to have on the economy, as well as on stocks. An acronym for "Heavy Asset, Low Obsolescence," the HALO trade aims to help safeguard investors' money as a new sort of safe haven: companies whose assets include huge and long-lived physical infrastructure. The HALO trade includes stocks like Newmont, the world's largest gold miner, energy companies like Exxon and Valero, and industrials as varied as Deere and the midcap HVAC installation and repair company Comfort Systems.
After investors spent years pouring money into AI stocks, the newly coined "HALO" trade is gaining credence on Wall Street, as a hedge against the impact artificial intelligence is broadly projected to have on the economy, as well as on stocks. An acronym for "Heavy Asset, Low Obsolescence," the HALO trade aims to help safeguard investors' money as a new sort of safe haven: companies whose assets include huge and long-lived physical infrastructure. The HALO trade includes stocks like Newmont, the world's largest gold miner, energy companies like Exxon and Valero, and industrials as varied as Deere and the midcap HVAC installation and repair company Comfort Systems.