Last Updated on August 4, 2026 by stlplace
The biggest news for this week must be the blow up of “Situational Awareness” hedge fund blow up. I had a thread on X.com, and also I watched quite a few YT videos on the evening of 2026-07-30, as I was vacationing.
Martin Shkreli Breaks Down the Collapse of Situational Awareness
Leopold Aschenbrenner’s Situational Awareness Hit by AI Selloff
How Leopold Aschenbrenner Lost $45 Billion in 3 Days
AI investor Leopold Aschenbrenner forced to unwind all public stock positions: Sources
And I think the below articles are good too – How the ‘Nostradamus of AI’ failed to spot a market crash
Star AI investor Leopold Aschenbrenner is unwinding trades after steep losses
Leopold Aschenbrenner just learned Wall Street’s oldest lesson: Chart of the Day
My biggest takeaway here again is twofold: 1) Don’t use leverage or excessive leverage. On a related matter, don’t short stocks. It appears one of the reasons Leopold lost is that his SaaS stock shorts backfired when they had a run in July. Full disclosure: I am long some SaaS stocks such as $BSY at this time.
2) Don’t believe other people, no matter how intelligent they are, re: my own investments.
On other news front, my $MSFT did very well post earning report in the after-hours of Wednesday 2026-07-29, and I was able to unload about 80% of it.
PS: more on leveraged ETF, which burned both the Korean retail investors and Leopold recently, in my opinion it’s basically “buy high, sell low”. Refer to this YT shorts video by Warren Buffett.
Reference:
How Rebalancing Works When Prices Rise (google AI overview – when I searched “does leveraged etf need to put up additional collateral when the portfolio go up“)
Mechanics of Rebalancing After a Drop (from google AI overview too)
Related question “has leveraged etf elevated the stock market volatility”
Just want to share one YT video from Warren Buffett
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