Serenity: Citadel First Manufactures Rate Hike Panic, Then Scoops Up AI Assets at Discount; Long-Term Market Uptrend Logic Remains Unchanged

Odaily News: "Stock God" Serenity posted on X, stating that Citadel's recent moves have been quite dramatic. A few days ago, Citadel called for an unexpected Federal Reserve rate hike, triggering market panic; subsequently, when the fund Situational Awareness, managed by "AI Stock God" Leopold Aschenbrenner, faced liquidity pressure, Citadel stepped in to purchase billions of dollars worth of AI-related assets that were forced into sale.

Serenity noted that in the end, the Federal Reserve did not raise rates, and Citadel has since stated that "the bull market drivers remain intact."

Previous reports showed that the Situational Awareness fund suffered from market declines on its leveraged positions, with its net value experiencing a significant drawdown in July, leading it to sell part of its public stock portfolio to meet margin requirements. Citadel subsequently acquired some of these assets at a discount.

In Serenity's view, the long-term market uptrend logic has not changed, and this event is more akin to an asset reallocation during the process of deleveraging.