Cheap fear gauge, rich valuations: protect before Friday's jobs number
Stay Hedged. Markets look calm on the surface, but the calm is masking real valuation risk.
November 5, 2026 at 9:03 AM EST
Justification
Markets look calm on the surface, but the calm is masking real valuation risk. Stock prices relative to earnings sit higher than 74 out of every 100 months since 2006, leaving little room for disappointment. The VIX, Wall Street's fear gauge, is 16.8 — below its one-year average of 18.0 — which makes protective put options unusually cheap right now. Buy puts on broad index exposure before Friday's jobs report moves the tape.
Since the Last Issue
- Fear & Greed Index moved from 27 to 35 since the prior issue — fear easing but still well below neutral
- VIX edged from 16.6 to 16.8 since the prior issue, holding below its one-year average of 18.0
📡 Today's Opportunity Radar: XBI · KRE · PEJ. Full ideas in the Opportunity Radar section below.
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