Worldwide Markets - Episode 666 📊

18 February 2025 🇿🇦 South African Economic Indicators

ZA 10-year yield | weekly

🤖 AI Valuations: Testing Anthropic's Opus 4.6

Can AI do DCF valuations? Testing on Dell (NYSE: DELL)
Opus 4.6 created detailed discounted cash flow model in ~10 minutes
148 formulas, zero errors (after self-correction)
Fair value estimate: $172 vs current ~$115 (significant upside potential)
⚠️ Important caveats: Sensitivity assumptions critical (WACC, terminal growth, risk-free rate)
DCF is just ONE valuation methodology
Rate limiting kicks in with heavy usage ($20/month tier)
US stocks work better than local stocks currently

💼 US Economy Update

Strong fundamentals emerging:
- $600B+ capex spend by hyperscalers (Alphabet, Meta, Microsoft)
- Better-than-expected January CPI
- Unemployment at 4.3% (jobs report revised down 1M though)
- GDP tracking closer to 3% than 1-1.5%
Two rate cuts still on the table for 2025
Tech infrastructure spending providing economic underpin

🚚 The Karaoke Company Logistics Disruption (?)

📅 Upcoming Events

Power Hour Thursday 5:30pm - Tax efficiency & ETF revolution (Standard Bank Rosebank or webcast)
ETF database updated with FNB, 10X, 1nnvest, Satrix funds
Budget next Wednesday - Simon will be in Cape Town

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"Look after yourself. If you can look after somebody else as well." 💚