Real Assets Re-Enter the Spotlight as AI Dominates Equity Narratives

Nuveen’s CIO commentary argues that heavy, capital-intensive assets may offer diversification as markets remain fixated on the AI investment cycle. 

• Geopolitical tensions and weaker U.S. job data have heightened volatility, even as economic indicators such as PMIs remain in expansion territory.

• The “HALO” theme—Heavy Assets, Low Obsolescence—highlights infrastructure and real estate as sectors less vulnerable to technological disruption.

• Listed real estate and global infrastructure currently trade at notable valuation discounts to broader U.S. equities, suggesting potential entry points.

As AI dominates equity narratives, investors may increasingly look to the physical economy—the infrastructure that powers the digital age—for balance.