The article states a few reasons. Mainly that the chip stocks "have rallied too far, too fast and spending on artificial intelligence has become excessive".
Relevant facts: Corporate insiders sold $77.6 billion of stock during the first half of 2026, a 20% increase from the first half of 2025.
>Relevant facts: Corporate insiders sold $77.6 billion of stock during the first half of 2026, a 20% increase from the first half of 2025.
Is this adjusted for stock price? If you got 100 RSUs per year, and stock prices went up 20% compared to last year, you'd get "20% increase", even though nothing really changed and you're just selling whatever you got.
I think with the breakdown in the current talks the traders are beginning to accept that neither side can capitulate on their core demands, and the war and shortage of hydrocarbons will continue past the crunch point.
It is obvious. All indices have been pumped up to insane heights since late 2024. KOSPI is crashing because the memory manufacturers are priced for continued bubble orders books. Those orders cannot be sustained and the selloff started in Korea, just as it did in the 2000 bubble.
The press is still instructed to avoid the word "cyclical" in connection with hardware, but the insiders remember 2000 very well.
If you watch daytrading, stocks like SpaceX or Micron are pumped up shortly after every opening so the insiders can sell higher during the day.
The insiders also own the press and analysts, so they desperately still construct positive narratives.
The other have is that the same press and analysts still desperately construct negative narratives (note, for example, the very story we're commenting on). The point isn't to pump the market up or to crash it (though there are clearly folks out there trying to do both); the real goal is to keep people milling about and keep the money sloshing around, which drives the turbines of finance.
Your realtor makes money when you buy, they make money when you sell. Your lawyer makes money when you sue or when you get sued. Landscapers get paid to put plants in and to take plants out. The only thing they can't profit (much) from is inactivity.
The desperation comes in when you try to keep the chocolate out of the peanut butter, and tell only the side you're trying to push without a hint of the counterarguments. (Or to provide only weak-sauce strawmen.)
KOSPI is "crashing" to ~6800 from the highs of ~9000, but that's still 110% higher than 1 year ago (~3200), so let's not get ahead of ourselves yet. It remains to be seen where it will land.
* Also, from what I heard in Korean news, many blame the current situation on the government allowing single-stock leverage funds for Samsung and SK Hynix, which reportedly made the market ultra volatile. (Well, most Korean stock traders are deranged gamblers, so maybe they are trying to find excuses, I dunno.)
> KOSPI is crashing because the memory manufacturers are priced for continued bubble orders books. Those orders cannot be sustained
Could you explain what that means? Are they overbooking and will not be able to meet those particular projections? Would a single segment of one industry cause a reverberation throughout?
It means that there will not be this level of memory demand for much longer. I tend to agree. Right now there is far more demand than supply, so they are cashing in while they can. It will be resolved one way or another eventually, current margins are not sustainable for the long term and will be resolved either via demand destruction or an increase of supply. Likely a combination of both.
I will never forget that CEO in the Netherlands who sold her shares weeks before the IPO. At heavily reduced prices. At least someone knew the emperor was butt naked! She became the figurehead of the dot com bubble and the insane 1990s. All completely legal- some rich folks who lost not insignificant sums of money did unleash their lawyers but let's face it you can't have a stock market without fraud.
Oh and you have to be a stone cold psychopath. I swear she should have gotten an Oscar.
Nah. Just do dollar cost averaging. The market will drop but it will come back. It is impossible to predict how the market will move, unless you have insider knowledge or power to manipulate the markets.
- dont have access to that article
- anyone wanna chime in and explain why?
- the war has surely been going on back and forth for a while now
- why suddenly start selling now?
The article states a few reasons. Mainly that the chip stocks "have rallied too far, too fast and spending on artificial intelligence has become excessive".
Relevant facts: Corporate insiders sold $77.6 billion of stock during the first half of 2026, a 20% increase from the first half of 2025.
>Relevant facts: Corporate insiders sold $77.6 billion of stock during the first half of 2026, a 20% increase from the first half of 2025.
Is this adjusted for stock price? If you got 100 RSUs per year, and stock prices went up 20% compared to last year, you'd get "20% increase", even though nothing really changed and you're just selling whatever you got.
Nasdaq 100 is up 13% YTD, so you may have a point. 20% more isn't so much more.
I think with the breakdown in the current talks the traders are beginning to accept that neither side can capitulate on their core demands, and the war and shortage of hydrocarbons will continue past the crunch point.
For tech stocks, every July for like the last 10 years has been down. Aug and Sept always correct.
What? QQQ has been up for 9 of the last 10 years in July.
It is obvious. All indices have been pumped up to insane heights since late 2024. KOSPI is crashing because the memory manufacturers are priced for continued bubble orders books. Those orders cannot be sustained and the selloff started in Korea, just as it did in the 2000 bubble.
The press is still instructed to avoid the word "cyclical" in connection with hardware, but the insiders remember 2000 very well.
If you watch daytrading, stocks like SpaceX or Micron are pumped up shortly after every opening so the insiders can sell higher during the day.
The insiders also own the press and analysts, so they desperately still construct positive narratives.
That's half the story.
The other have is that the same press and analysts still desperately construct negative narratives (note, for example, the very story we're commenting on). The point isn't to pump the market up or to crash it (though there are clearly folks out there trying to do both); the real goal is to keep people milling about and keep the money sloshing around, which drives the turbines of finance.
Your realtor makes money when you buy, they make money when you sell. Your lawyer makes money when you sue or when you get sued. Landscapers get paid to put plants in and to take plants out. The only thing they can't profit (much) from is inactivity.
There's no need for a lot desperation to construct a really negative narrative about markets right now. It just takes a bit of math.
Ditto for a really positive narrative.
The desperation comes in when you try to keep the chocolate out of the peanut butter, and tell only the side you're trying to push without a hint of the counterarguments. (Or to provide only weak-sauce strawmen.)
KOSPI is "crashing" to ~6800 from the highs of ~9000, but that's still 110% higher than 1 year ago (~3200), so let's not get ahead of ourselves yet. It remains to be seen where it will land.
* Also, from what I heard in Korean news, many blame the current situation on the government allowing single-stock leverage funds for Samsung and SK Hynix, which reportedly made the market ultra volatile. (Well, most Korean stock traders are deranged gamblers, so maybe they are trying to find excuses, I dunno.)
> KOSPI is crashing because the memory manufacturers are priced for continued bubble orders books. Those orders cannot be sustained
Could you explain what that means? Are they overbooking and will not be able to meet those particular projections? Would a single segment of one industry cause a reverberation throughout?
It means that there will not be this level of memory demand for much longer. I tend to agree. Right now there is far more demand than supply, so they are cashing in while they can. It will be resolved one way or another eventually, current margins are not sustainable for the long term and will be resolved either via demand destruction or an increase of supply. Likely a combination of both.
I will never forget that CEO in the Netherlands who sold her shares weeks before the IPO. At heavily reduced prices. At least someone knew the emperor was butt naked! She became the figurehead of the dot com bubble and the insane 1990s. All completely legal- some rich folks who lost not insignificant sums of money did unleash their lawyers but let's face it you can't have a stock market without fraud.
Oh and you have to be a stone cold psychopath. I swear she should have gotten an Oscar.
You'll mean Nina Brink.
https://en.wikipedia.org/wiki/World_Online
So should we all be shorting the market now??
Nah. Just do dollar cost averaging. The market will drop but it will come back. It is impossible to predict how the market will move, unless you have insider knowledge or power to manipulate the markets.
Counterpoint: we know it will move down