Show and guest
Airing on Schwab Network, Convexitas co-founder and CIO Zed Francis discusses last Thursday’s market selloff. English original title: 2026's First "Sell Everything" Day: How NVDA, Other AI Stocks, VIX Hit Markets.
Key takeaways
- Last Thursday was 2026’s first real “sell everything” day, with 80% of stocks falling on the same day (measured by trading volume and the number of advancing and declining stocks). There are typically about 20 such days a year; over the past three years, markets saw only divergent rotations, never a day like this. 0:26
- The cause was deleveraging by multi-strategy hedge funds: long-short strategies deleveraged first, then moved to “de-grossing” and ultimately liquidation mode, alongside quantitative strategies such as target volatility and risk parity rebalancing based on realized volatility. As soon as volatility jumped, they were forced to cut equity exposure. 1:30
- The market no longer believes in the E in semiconductor earnings: the sharp decline in the S&P 500’s overall forward P/E was driven mainly by semiconductor companies and hyperscalers. Semiconductor forward P/Es fell to 11–12x, while memory is at just 3–4x; either the market has completely mispriced them, or it does not believe in the E. 3:42
- His view is that the former is true: hyperscalers’ capex plans have not changed, and AI infrastructure earnings reports have “beat and raised” guidance. AMD’s earnings beat expectations across the board, yet its stock fell more than 10% that week and then became a leading gainer the following week, indicating that last week’s selloff was purely technical. 5:00
- Nvidia’s real problem is Jensen Huang himself: he is AI’s “top salesman” and “global AI ambassador,” and during his “ban until next spring” the market will be without its strongest voice. 6:00
Background and notes
Zed Francis discusses the causes of last Thursday’s “sell everything” day, semiconductor valuations, and the impact of the investigation into Jensen Huang on the market on Schwab Network. Subtitle coverage note: the video has 278 timestamped segments, covering 0:00–8:11 (total length 8:11), covering the full video. The views and timestamps in this article are based on the original subtitles; each timestamp marks the start of the corresponding spoken segment. Publication-time note: the publication time is approximately 06:10 on 2026-11-11 Hong Kong time, converted from the relative time displayed by YouTube when retrieved, and is accurate to the hour.