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Philochat

💬Philochat: MEME BOTTOM

Philoinvestor

Philoinvestor

— 2 min read
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💬Philochat: MEME BOTTOM

Hi, I’m Philo, founder of Philoinvestor. I’m a generalist, opportunistic, and idiosyncratic investor who believes the best opportunities come from independent thinking, not consensus or vibes.

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In the last 48hrs we've seen a cascade of events coming out of South Korea.

  • Authorities mobilised to deal with Leveraged ETFs
  • Supporting financials having issues with margin calls and liquidations
  • Support hotlines for investors that lost a lot of money, fast
  • And results from SK Hynix that disappointed investors
  • To be honest, they were looking for an excuse, considering how negative the setup is and how scary the chart of the KOSPI looks

TOO LATE!

As we said in yesterday's Philochat: "We are late bro!"

  • If you were looking to short and profit for this move, too late.
  • If you were looking to take profits, too late.
  • If you can't be on time – BE EARLY.

If you missed my podcast interview with Michael Fritzell, here's the link:

Situational Awareness Going Under

But even more interesting than mass liquidations in South Korea (we knew it was happening) is news coming out of Leopold Aschenbrenner's fund – Situational Awareness.

*Leopold Aschenbrenner’s Situational Awareness seeks to raise capital after AI rout
*Hedge fund has held talks with existing investors and lenders in recent days

To put it simply for those who don't follow, Leopold's fund is probably going into liquidation after deep losses stemming from leveraged bets on AI.

We warned that Leo is the "poster boi" of this cycle not only on X but in Flash Philo on Memory just last month. If only he subscribed to Philoinvestor he would know to channel his inner contra!

Meme Bottom

Having said all this, a number of AI stocks have reached key support levels, the sell-off has been loud, broad and forced – and many have already been liquidated.

Leopold's current existential crisis could end up marking a classic "meme bottom" – setting the stage for a sharp pain rally from here, until the next selloff.

Philo 🦉

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