Fear Jumps, Valuations Stay Stretched: Time to Buy Cheap Protection
Add Portfolio Protection. Stocks are priced richly and fear is rising, a combination that calls for protection.
October 14, 2026 at 12:01 PM EDT
Justification
Stocks are priced richly and fear is rising, a combination that calls for protection. The Fear and Greed Index dropped from 45 to 35 in one day, moving firmly into fear territory. The VIX, Wall Street's fear gauge, is 16.2 — below 20, which makes protective put options relatively cheap to buy right now. Stock valuations sit higher than roughly 79 out of every 100 months since 2006. Consider buying puts on broad index funds like SPY while premium remains affordable.
Since the Last Issue
- Fear and Greed Index fell from 45 to 35 since the prior issue, crossing from neutral into fear territory
- S&P 500 dropped from 7805 to 7734, a move of -71 points, while RSI fell from 59.2 to 50.9
📡 Today's Opportunity Radar: XBI · ITB · FCG. Full ideas in the Opportunity Radar section below.
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