Tematica Research Head of Indexing Mark Abssy joins Thomas Warner from Proactive to discuss the current state of the digital connectivity and infrastructure markets. Abssy highlights the general pullback in equities in September, attributing it to persistent inflation fears and concerns of potential recession and potentially even a prolonged depression.
Despite the downturn, he emphasises the ongoing demand for digital infrastructure, driven by increasing digitisation and the need for supportive infrastructure. He mentioned the "virtuous circle" of technology investing, where despite global challenges, the internet's usage continues to grow.
Abssy also touched on macro pressures affecting the market, including recent events in Israel impacting oil markets and concerns about the Strategic Petroleum Reserve in the US. He concluded by emphasising the enduring demand for both digital and physical infrastructure.
The Tematica BITA Digital Infrastructure and Connectivity Sustainability Screened Index aims to capture the market performance of a basket of global and publicly listed companies that derive over 80% of their revenue or earnings from the provision of at least one of the following services: Data Centers, Data Networks, Digital Connectivity, Digital Transmission, Digital Processing, Digital Services and Intellectual Property.
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