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Author: Zui Feng Trading Desk
As AI products become easier to replicate, the market is beginning to reprice "hard-to-duplicate physical assets" such as power grids, pipelines, infrastructure, and long-term capacity.
On February 24, Goldman Sachs Global Investment Research released its latest report, "The HALO Effect: Heavy Assets, Low Obsolescence in the AI Era," which states: Under the combined effects of higher real interest rates, geopolitical fragmentation, supply chain restructuring, and a wave of AI capital expenditures, the core valuation logic of the stock market is shifting from an "expandable light-asset narrative" to "buildable, hard-to-replace physical capacity and networks."
Goldman Sachs summarizes this change as a "repricing of scarcity."
"Higher real yields, geopolitical fragmentation, and supply