Goldman Sachs applies HALO framework to Europe's structural assets

Goldman Sachs applied its HALO framework, which focuses on heavy assets and low obsolescence, to Europe. The bank noted that roughly 40% of the MSCI Europe index is concentrated in sectors fitting this theme, including energy, materials, regulated utilities, and capital goods. The research also highlighted Germany's fiscal impulse, estimating a potential 50 to 60 basis point addition to GDP through spending on defense, energy transition, and infrastructure.

The framework suggests Europe has a structural tilt toward tangible assets, which the bank views as a key investment theme. Furthermore, Germany's planned spending on defense, energy transition, and infrastructure could provide a meaningful boost to GDP, especially given its low growth rate of 0.2% in 2025.