Goldman Says HALO Trade Gains 20% and Enters New Phase as Asset-Heavy Stocks Lead
Updated
Updated · Business Insider · Jul 7
Goldman Says HALO Trade Gains 20% and Enters New Phase as Asset-Heavy Stocks Lead
3 articles · Updated · Business Insider · Jul 7
Summary
Goldman said its HALO pair trade—long capital-intensive stocks and short capital-light peers—is up about 20% year to date and is shifting into a new phase.
Returns are now expected to be driven more by earnings than valuation catch-up, with Goldman arguing investors remain under-positioned for a world favoring physical assets, infrastructure and industrial capacity.
The bank said the trade held through Iran-war volatility: capital-intensive stocks sold off early with global-trade fears but have since moved above pre-war levels and outperformed capital-light companies.
Goldman is increasingly confident in energy security and industrial sovereignty, highlighting names across infrastructure, materials, defense, manufacturing and tech hardware including Enel, Shell, Airbus, Volvo and ASML.