This morning we’ve deliberately avoided discussing Firmus at length, there’s plenty of coverage elsewhere, instead we’ve focused on alternatives on the ASX although each company has its own characteristic. However, the overreaching factor weighing on the sector is the bond market as risk free money pays a higher return:
- Bond yields trading around multi-decade highs are compressing the price that investors are prepared to pay for future earnings, i.e. the sector as a whole is under pressure.
Our preferred two ASX stocks for exposure to data centres are Goodman Group for growth and DigiCo as an alternative way of playing the space, supported by a more than 5% yield.
