Australia Stocks Lower

Australia’s stocks were lower after the close on Thursday, as losses in the gold, information technology, and consumer discretionary sectors weighed on the market.

The S&P/ASX 200 index fell 1.77 percent at the close in Sydney, setting a new 6-month low.

Beach Energy Ltd (ASX: BPT) was the session’s best performer on the S&P/ASX 200, rising 8.81 percent or 0.115 points to trade at 1.420 at the close. In late trade, Platinum Asset Management Ltd (ASX: PTM) rose 4.66 percent or 0.11 points to end at 2.47, while AusNet Services Ltd (ASX: AST) rose 4.45 percent or 0.110 points to 2.580. Kogan.com Ltd (ASX: KGN) was the session’s worst performer. It fell 12.27 percent or 0.86 points to trade at 6.15 at the close. Evolution Mining Ltd (ASX: EVN) fell 11.28 percent or 0.44 points to close at 3.46. Meanwhile, Silver Lake Resources Ltd (ASX: SLR) fell 11.04 percent or 0.185 points to close at 1.490.

On the Sydney Stock Exchange, declining stocks outnumbered advancing ones by 1051 to 456, with 360 remaining unchanged.

The S&P/ASX 200 VIX, which measures implied volatility of S&P/ASX 200 options, rose 19.02 percent to a new 52-week high of 22.061. Gold futures for February delivery fell 1.08 percent, or $1.70 per troy ounce, to $1810.00 per troy ounce. March crude oil fell 0.26 percent or 0.23 cents to $87.12 a barrel in other commodities trading, while the April Brent oil contract fell 0.24 percent or 0.21 cents to $88.53 a barrel.

The AUD/USD fell 0.58 percent to 0.7073, while the AUD/JPY fell 0.47 percent to 81.17.

The US Dollar Index Futures was trading at 96.743, up 0.36 percent.

Self-Storage

Several industries demonstrate resiliency during difficult economic times, but few are genuinely recession-proof. One of them is self-storage. During times of adversity, self-storage demand skyrockets. Relocation, downsizing, death, and divorce, among other significant life changes, frequently cause people to reassess their belongings, storing what no longer serves them.

Today, Public Storage is the largest publicly traded self-storage REIT, with ownership or interest in approximately 2,700 self-storage facilities across the United States. Since 2019, Public Storage has been rapidly expanding, spending a record $7.1 billion over the last two years.

The Demand for Data Should Remain High

Every year, our society becomes more reliant on technology. Mobile apps, social media, streaming services, video streaming, cloud-based business solutions, and a plethora of other technologies have all become commonplace in our lives. Furthermore, telecommunications and data demand skyrocketed after the pandemic. People spent more time at home and transitioned to remote work. It means that data center REITs like Equinix did exceptionally well. Hence it will most likely continue to do so in 2022.

The company owns, operates, and leases approximately 237 data storage facilities in 27 countries across five continents. Its revenues have increased for 75 consecutive quarters. The company has over 10,000 customers worldwide and works with 1,800 networks and 3,000 cloud-based and IT companies, indicating an enormous market.

Data centers have a high barrier to entry. They require significant space, capital, and time to develop for market delivery. While development in this sector is accelerating, existing operators benefit from the sector’s continued growth in demand. Equinix is currently trading for about 15% less than it was at the start of 2022, indicating that it is trading at a significant discount on its market value.