Bear Market Signals: Semiconductor Stocks Sink

Semiconductor stocks, led by the SOX, saw their worst monthly performance since 2008 in July despite a strong first half of 2026. Market valuations have approached 1999 levels, with the S&P 500 earnings yield now below the 10-Year Treasury, signaling a negative equity risk premium. Insider buying is at a two-decade low by one metric, while retail margin debt has hit record highs, highlighting elevated risk appetite and potential vulnerability. Credit markets are deteriorating, with rising CMBS delinquencies and concerns around OpenAI's sustainability threatening major tech and AI ecosystem players. The article below explores four key signals that point to tougher times ahead for investors.

Semiconductors had their worst monthly performance in July, since October 2008. Albeit the Philadelphia Semiconductor Index (SOX) was up just over 90% in the first half of 2026 and was the tip of the spear of the This article was written by The Insiders Forum 9.23K Followers Follow We are a team of analysts led by Bret Jensen, Chief Investment Strategist at Simplified Asset Management. We run the investing group The Insiders Forum where we specialize in small and mid-cap stocks that insiders are buying. The Insiders Forum portfolio managed by Bret Jensen consists of 12-25 top stocks in different sectors of the market that are attractively valued and have had some significant and recent insider purchases. Our goal is to outperform the Russell 2000 (the benchmark) over time.