Market Musings 210226: The HALO Effect Intensifies

Market Musings 210226:The HALO Effect Intensifies
Podcast: European Banks: further to go (click on link to listen)
European banks delivered an exceptional stock market performance in 2025, averaging +67% in EUR, far outpacing all other European and American sectors.
What are the outlook and prospects for 2026?

European banks remain undervalued and one of our preferred sectors.New opportunities and efficiency gains emerge, with limited risks.Estimated upside potential for the European sector in 2026: +15% on average.US banks are also healthy, but their appreciation potential is more limited.

Rotation to HALO: Heavy Assets, Low Obsolescence
The prevailing theme in the stock market at present is the rotation away from digital assets back towards physical assets.
With investors increasingly worried about which companies and industries are at risk from disruption from Artificial Intelligence, they have instead begun to favour companies and industries where the risk of AI disruption is low to none.
Sectors such as software and even logistics have suffered from dramatic falls in stock prices following the launch of Anthropic’s Claude Code AI coding agent, which can allow much faster development of custom software applications...