HALO Stocks Present AI-Resilient Investment Opportunity Amid Market Anxiety
While investors continue to express widespread concern about artificial intelligence potentially disrupting entire industries, a compelling investment concept called HALO—heavy assets, low obsolescence—is gaining significant traction in financial circles. This framework offers a strategic approach to navigating the AI revolution while minimizing technology replacement threats.
The HALO Investment Framework Explained
HALO represents a stock-picking methodology recently popularized by Josh Brown, chief executive of Ritholtz Wealth Management LLC and a prominent CNBC contributor. Developed in response to the substantial decline in software stocks during early 2026, this approach specifically targets companies that demonstrate the greatest resilience to AI disruption while potentially benefiting from technological advancements.
Although HALO stocks remain vulnerable to traditional market risks like economic cycles, they offer investors crucial protection against the threat of technological obsolescence. At minimum, these investments provide portfolio stability, allowing investors to breathe easier knowing artificial intelligence won't render their holdings obsolete.
Metals and Commodities: The Foundation of Physical Assets
One sector perfectly embodying the HALO philosophy involves companies producing tangible materials—what one investment professional humorously described as "things that would hurt if you dropped them on your foot." Regardless of how AI technology evolves, physical construction will remain essential, with materials like nickel, iron ore, lumber, steel, and gold bars maintaining their fundamental value.
Canada possesses particularly advantageous positioning in this sector with its vast metal resources. While tariff uncertainties continue to create market confusion, artificial intelligence represents a more enduring factor than temporary trade policies. Although AI may not generate massive cost savings for mining and production companies, it can still provide incremental operational improvements.
Energy Infrastructure: Enduring Physical Systems
The energy sector, particularly midstream infrastructure, exemplifies the HALO investment principle. Despite environmental concerns, carbon-based energy remains essential for the foreseeable future, with physical infrastructure like oil and gas pipelines, processing plants, storage facilities, refineries, and extraction operations immune to AI replacement.
Recent market performance underscores this resilience. Companies like Enbridge Inc. have reached all-time highs, while the S&P/TSX energy sector—often overlooked by investors—has already gained approximately 15 percent this year. Infrastructure represents the ultimate hard asset category, with major oil refineries costing upwards of $10 billion. Additional examples include Suncor Energy Inc., Keyera Corp., and Pembina Pipeline Corp.
Defense and Aerospace: Physical Security in a Digital Age
While artificial intelligence will undoubtedly play significant roles in future military operations, physical defense capabilities remain irreplaceable. Nations will continue requiring ships, aircraft carriers, planes, tanks, and armored personnel carriers for national security. This sector benefits from nearly universal increases in defense spending as countries respond to shifting global dynamics.
The defense industry combines substantial physical assets with growing government budgets, creating a powerful investment combination that aligns perfectly with the HALO framework's emphasis on tangible, enduring value.
As investors navigate the complex landscape of artificial intelligence's market impact, the HALO investment strategy offers a structured approach to identifying companies with physical assets and low technological obsolescence risk. While no investment eliminates all market dangers, this framework provides valuable protection against one of today's most significant technological disruptions.
