Investors should consider ‘HALO’ stocks for longer-term investments, according to a Goldman Sachs equity strategist.
HALO stands for ‘Heavy Assets, Low Obsolescence’ and is a strategy that invests in stocks related to sectors considered resilient to disruptions caused by artificial intelligence.
Sharon Bell, a senior European equity strategist at Goldman, say in a new interview that HALO stock is poised to emerge as “structural winners.”
“And by that I mean things like utilities, telecom companies, industrial companies and even energy companies that invest and have good assets and can make returns on those assets. And I think Europe has a lot of that. I also like our renewable energy companies, defense companies and aerospace companies. I think the technology sector in Europe is trading at a discount to similar companies elsewhere in the world.”
Bell also says bank stocks can make profits.
“We think interest rates will stay higher for longer and that will help the banking sector.”
The strategist says investors can get positive returns from European stocks, but still believes US and Asian stocks will outperform.
“So we want the US to do better because there are large hyperscalers where we expect quite good returns. And we’re looking for an economy to grow quite well in the US over the next few years. So we think the US market will also continue to outperform Asia. We see that [it] driven by profits, driven by the semi-equities and driven by the technology sector.”
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