The Safe Investor

SMH Just Wiped Out 24% in One Month—Is This the Start of the AI Stock Market Crash?

SMH is dropping like crazy.

In just one month, the VanEck Semiconductor ETF (SMH) fell from around $660 to near $504—a painful drop of about 24%.

So, is the AI boom over?

Is Nvidia crashing?

Should investors panic and sell their semiconductor stocks?

Here is what is really happening.

1. The market expected AI companies to be perfect

Semiconductor stocks went up too far, too fast.

For months, investors believed that AI demand would keep growing endlessly. Nvidia, TSMC, Broadcom, AMD, Micron and SK Hynix became the hottest stocks in the market.

But when expectations become too high, even strong results can disappoint.

SK Hynix recently reported massive profit growth—but it was still not good enough for Wall Street’s extremely high expectations. That triggered a wave of fear across the entire semiconductor sector.

This is the biggest lesson for investors:

A great company can still fall when investors expect too much.

2. Investors are worried about the AI spending bubble

Big technology companies are spending billions and billions on AI data centres, chips and servers.

But investors are now asking a very important question:

“When will all this AI spending produce real profits?”

The market is becoming more careful. Companies cannot just say “AI” anymore and expect their stock prices to go higher.

Investors now want to see actual revenue, strong profits and real cash flow.

That is why AI stocks, chip stocks and semiconductor ETFs like SMH are falling together.

3. SMH is heavily concentrated in a few AI stocks

Many investors think SMH is diversified because it holds many semiconductor companies.

But SMH is still heavily dependent on a few major names.

Nvidia alone makes up over 20% of SMH. TSMC, Broadcom, AMD, Micron and ASML also have large positions.

So when Nvidia and other AI chip stocks fall, SMH falls hard too.

That is why SMH can be much more volatile than the S&P 500 or QQQ.

4. China competition and chip restrictions are creating fear

There are also concerns about China becoming stronger in AI chips and semiconductor technology.

At the same time, US restrictions on advanced chip sales to China are creating uncertainty for companies like Nvidia and AMD.

China is a huge market.

If US chip companies sell fewer chips there, investors worry that future revenue growth may slow down.

This does not mean Nvidia or TSMC are bad companies.

It simply means the market is pricing in more risk.

5. Interest rates are still hurting growth stocks

The Federal Reserve is still worried about inflation.

When interest rates stay high, investors become less willing to pay high prices for growth stocks.

Semiconductor stocks are especially sensitive because investors are buying them for future growth.

When the market becomes nervous, money often flows out of high-growth stocks first.

That is exactly what we are seeing now.

Is the AI boom over?

Probably not.

AI still needs chips.

Data centres still need Nvidia, TSMC, Broadcom, Micron, ASML and many other semiconductor companies.

But the market may be learning an important lesson:

AI demand can be strong, while AI stock prices can still fall.

The long-term semiconductor story may still be alive.

But short term, SMH could remain volatile if earnings disappoint, AI spending slows down, or investors continue taking profits.

What should investors do during a stock market crash?

Do not panic.

Do not chase the price down.

And do not blindly buy just because a stock has fallen.

A market crash can create amazing long-term buying opportunities—but only if you buy quality companies, use proper risk management, and avoid gambling with short-term options.

The best investors prepare before the crash happens.

They keep cash ready.

They understand what they own.

And they buy strong assets when fear is high.

Join my Telegram now to see which stocks I am buying during a market crash:
https://t.me/thesafeinvestor2

“I Told You Not to Buy Silver in Singapore”

Should you buy silver in Singapore after the silver price crash?

Many Singapore investors believed silver was a safe investment—until it lost more than half its value.

From a peak above US$120 in January 2026…

Silver is now trading around US$59 in July 2026.

📉 That’s a silver price collapse of more than 50%
📉 And months of investor profits… wiped out in a flash

This was the precious metal everyone was chasing.

Silver was supposed to protect investors from inflation.

Industrial demand was growing.
Global supply was limited.
Social media predicted silver would reach US$200.

But now?

That entire silver rally is gone.

The Illusion of “Safe” Silver Investing

Investors said:

“Silver is running out!”
“Silver prices can only go higher!”
“Industrial demand will make me rich!”
“Precious metals are safer than stocks!”

But then reality hit:

🚨 Speculation pushed silver prices too high, too quickly
🚨 Higher futures margins forced leveraged traders to sell
🚨 A stronger US dollar pressured precious-metal prices
🚨 Higher interest-rate expectations weakened demand
🚨 Panic selling accelerated the silver price crash

And suddenly… silver collapsed.

Precious Metals Can Crash Too

Silver may be a precious metal—but that does not make it a risk-free investment.

If you buy silver after a massive rally because everyone says it is going higher, you are not investing safely.

You are chasing the price.

And chasing silver, stocks, ETFs or cryptocurrency without a risk-management plan is still gambling.

Is Now a Good Time to Buy Silver in Singapore?

The silver price chart shows it testing a long-term trend line around US$59.

But technical support does not guarantee that silver has reached the bottom.

Before investing in silver, ask yourself:

What happens if the silver price falls another 20%?

Safe investors plan for the downside before calculating their potential profit.

The Options Trading Lesson

With the right options trading strategies, investors may have more ways to manage risk:

🛡️ Protective put options may help limit portfolio losses
💰 Covered call options may generate income while holding an investment
📉 Cash-secured puts may help investors enter at a lower price
⏳ Long-term options trading gives an investment thesis more time to work

Options trading is not about 0DTE options, day trading or gambling on tomorrow’s silver price.

It should begin with one question:

“How do I protect my money before entering the trade?”

That is the difference between gambling with options and practising Safe Options Trading.

👉 If you are searching for an options trading course for beginners in Singapore, watch my FREE Options 360 course to learn how options may be used for portfolio protection, additional income and long-term investing:

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Safe Options Trading—Not Gambling.

"Adobe Stock Crash: 6 Years of Profit… Gone Overnight"

It was the king of creative software—until it wasn’t.

Adobe stock (NASDAQ: ADBE), the company behind Photoshop, Illustrator, Premiere Pro and Acrobat, has officially crashed.

From an all-time high near $688 in November 2021…

Now trading around $225 in July 2026.

📉 That’s a 67% Adobe stock price collapse
📉 And roughly six years of investor gains… wiped out in a flash

This was the software giant that once controlled the creative world.

Designers paid every month.
Businesses depended on its software.
Its subscription empire looked unstoppable.

But now?

That entire Adobe stock rally is gone.

The Danger of Buy-and-Hope Investing

Investors said:

“Everyone uses Photoshop!”
“Adobe owns the creative industry!”
“Creative Cloud subscriptions will grow forever!”

But then reality hit:

🚨 Generative AI made image creation faster and cheaper
🚨 Canva, Figma and AI-powered tools intensified competition
🚨 Investors questioned whether Adobe could monetise AI fast enough
🚨 Long-time CEO Shantanu Narayen announced his departure
🚨 Leadership changes created even more uncertainty

And suddenly… Adobe stock tanked.

Buying a Great Company Is Not Enough

Warren Buffett said it best:

“Only when the tide goes out do you discover who’s been swimming naked.”

Adobe wasn’t just swimming naked—

It was sprinting through Wall Street with a premium valuation and billion-dollar expectations…

Until they collapsed under the weight of AI disruption, rising competition and investor doubt.

The Options Trading Lesson

If you’re investing in stocks and hoping they rise forever, ask yourself:

What protects your investment portfolio when a stock crashes by 30%, 50% or even 67%?

Because six years of paper profits can disappear faster than most investors expect.

This is why learning proper options trading risk management matters.

With the right long-term options strategies, investors have more choices:

🛡️ Protective put options may help limit downside risk
💰 Covered call options may generate income from shares
📉 Cash-secured puts may help investors enter at a lower price
⏳ Long-term options trading gives an investment thesis more time to work

Options trading is not about day trading, 0DTE options, gambling or predicting tomorrow’s stock price.

It should begin with one question:

“How do I protect my money before entering the trade?”

That is the difference between gambling with options and practising Safe Options Trading.

👉 Watch my FREE Options Trading for Beginners Course in Singapore to learn how options can be used for portfolio protection, additional income and long-term investing:

https://tinyurl.com/Options-360-SG

Safe Options Trading—Not Gambling.

5 Best Singapore ETFs to Buy for Passive Income & Early Retirement 🇸🇬📈

If you’re looking for the best ETFs in Singapore to grow your wealth, generate passive income, and work toward early retirement, this is a great place to start.

Whether you’re a beginner or a long-term investor, these ETFs can help you build a diversified investment portfolio with less effort.

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