Earnings Valuations Stay Stretched While Fear Quietly Builds
Keep the Protection On. Stocks look expensive and fear is creeping back in, a combination that rewards caution.
October 15, 2026 at 12:01 PM EDT
Justification
Stocks look expensive and fear is creeping back in, a combination that rewards caution. The price-to-earnings ratio sits higher than in 77 of every 100 months since 2006. The Fear & Greed Index dropped to 31, firmly in fear territory. The VIX, Wall Street's fear gauge, is 16.7 — below 20, which makes protective put options relatively cheap to buy right now. Watch Healthcare, which gained 2.5% today while Technology fell 1.2%, as a defensive rotation worth tracking.
Since the Last Issue
- Fear & Greed Index moved from 30 to 31 since the prior issue, still deep in fear territory.
- S&P 500 rose from 7718.94 to 7730.78 since the prior issue, a gain of about 11.8 points.
📡 Today's Opportunity Radar: ITB · XBI · PEJ. Full ideas in the Opportunity Radar section below.
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