2/17/2026
By Charles Payne, CEO & Principal Analyst

Valuations

Valuations have also influenced the year-to-date action. When it comes to individual stocks, I care very little about the price-to-earnings (P/E) ratio when the company is growing the top line organically, expanding margins, gaining market share, and executing. But deep-pocketed investors eschew high valuation metrics, especially when things get rocky.

Stocks with the highest price-to-sales (P/S) ratio have taken the biggest hits. In fact, the rest of the market is actually trading higher.

Getting Carried Away

Japan has a new Prime Minister looking to revitalize the “Land of the Rising Sun,” and that means a higher yen and a higher stock market, which means the end of the ‘carry trade.’ The drying up of that liquidity source has already taken a toll on hot-money investments, such as crypto and software.

The gyrations in the market have not been imagined.

To read the full report, contact your account representative or email Info@wstreet.com.

Charles Payne
Wall Street Strategies

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