Clan Capital

Nvidia beat revenue estimates but missed lofty expectations
• Blackwell chip demand should outpace supply for 2 years - but has overheating concerns
• Gross margin targets are mid-70s, but launch costs impact next 6 months
• Nvidia sold off 2.5% after hours to $142

Nvidia remains a strong buy across analysts who have been revising earnings estimates and price targets up

For the first time in years, markets are experiencing real fear. Volatility has spiked materially, equity markets are wobbling.

History suggests 10% corrections are an opportunity to buy the market, and sell protective hedges, such as puts, volatility, and gold.

It’s much easier to include structural diversification through allocations to active managers, alternatives, and quantitative strategies that stay invested, but in non-correlated strategies

At Clan we do both to ensure we pro-actively manage portfolios that are designed to compound smart allocations over the long term

Let us help you ensure you have a well-diversified portfolio and pro-active risk management in place, to avoid periods of fear like this

US Fed is expected to pause rate hikes until November to evaluate the delayed impact of the higher cost of capital on consumer spending and business investment. However the latest inflation data suggests there is more to be done to tame inflation

Wishing our clients, business partners, and their families a relaxed and enjoyable holiday

It’s been a challenging year for investors with extreme geopolitical and market conditions.

It’s time for connecting with our families and friends, and using this time to pause and refresh, before taking up the challenge that the new year brings

Merry Christmas and happy holidays!

We wish Zubeida and her family a very joyful Eid

May you be blessed with kindness, patience and love

Eid Mubarak

Charlie Munger's latest warning "Most people have no idea of what's coming"

Charlie is the vice chairman of Berkshire Hathaway, and arguably more interesting than Warren Buffett.

In this clip he covers a lot of important topics in a succinct style. He starts with "We're flirting with serious trouble" and covers investing, inflation, policy, and the challenges facing investors

I recommend selecting a 1.25x playback speed

"Most People Have No Idea What Is Coming..." - Charlie Munger's Last WARNING Charlie Munger warns investors of what’s ahead for the markets. He says, the trouble that’s coming could be worse and harder to fix than what was experienced...

Wishing you a relaxed and peaceful holiday, and Christmas gatherings that celebrate family time. In the markets there is a saying that a pullback is a pause that refreshes, not a reason to panic. Enjoy a break, take stock, and get ready for 2022 re-energised

Supply chain problems. With the US economy likely to remain highly dependent on Pacific trade, the Los Angeles and Long Beach ports need further investment to boost their capacity. The bipartisan infrastructure bill championed by the Biden administration allocates $17bn to ports, but Cordero said public funding alone will not suffice. Instead, he sounds hopeful that private equity firms will be drawn to the potential returns from investing in US port infrastructure Source: FT

COVID EXCESS DEATHS Over 260,000 more people have died in South Africa since May 2020 than expected. This is according to researchers at the Medical Research Council (MRC), who estimate that 85 to 95% of these “excess” deaths are directly from Covid Source: GroundUp

Decoding the Month of September

Every month we collate a whole lot of market information and opinion from various sources locally and abroad to help us place context around economic developments, and identify potential opportunities for our portfolios

At the moment I am going through the Corion Capital monthly report for September 2021. Corion is managed by David Bacher, who has been in the multi-manager and hedge fund industry for decades, and took over the fund of fund hedge fund business I founded for Brait.

Here is a short clip that highlights:
It was a difficult month for global equities, bonds, property, and gold
US 10 year rates started to rise
Russia, Japan, China, and India did well, the West not so much
Debt concerns around Chinese property company Evergrande spilled over into broader asset sell-offs
Energy prices spiked while materials dropped significantly
Small caps led SA equities



Decoding the Month - September 2021 Decoding the Month - September 2021