Investing in the Resource Security Supercycle

The era of cheap, reliable resource supply is over, replaced by a "resource security supercycle" driven by geopolitical fragmentation and surging AI-related power demand. This shift necessitates massive capital spending on physical infrastructure, creating opportunities in what the author terms "HALO" (Heavy Assets, Low Obsolescence) companies.

This translates into a multi-decade investment cycle focused on energy and industrial buildouts. We're seeing increased investment in oil and gas infrastructure, particularly LNG, alongside renewables and nuclear power. Utilities and grid operators are crucial as demand strains existing networks.

Companies enabling this buildout through equipment and critical materials like copper and steel are also well-positioned. The key takeaway is to look beyond traditional commodity plays to the physical foundations of future economic growth and security. Uncertainty remains regarding the precise pace and scale of some infrastructure projects.