The Record Raise and the Chip Selloff Are the Same Event!

The easiest moment to raise money is the worst moment for returns. Every yuan raised becomes capacity, capacity becomes supply, supply crushes price — the market discounts the future return in the same second it hands over the cash.

The record raise and the chip selloff are not two contradictory events. They are two ends of the same one.

On July 16, memory broke everywhere at once. In the US session, the Philadelphia Semiconductor Index fell 4.29%, SK Hynix over 13%, SanDisk over 12%, Seagate 10%, Western Digital over 9%, Micron over 5%, Intel nearly 6%. The Nasdaq fell 1.47%, the S&P 500 fell 0.51%, the Dow fell 0.2% — the indices held up fine. Only chips broke. In China's session that same day, the STAR 50 closed down 4.02%, and electronics and telecom saw combined net outflows of more than 30 billion yuan.

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