Arsenal's victory over Crystal Palace saw them go four points clear at the top of the Premier League table on Sunday.
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Afterwards, Walcott said on BBC Sport: "Arsenal can do a bit of everything now. The whole team has a fear factor.
"People are just afraid of them and it is great to see.
"It's starting to now be normal that they don't concede goals.
"They will have a bad patch and last year it was too many draws, but I don't think that's going to happen this year.
"There is belief in the whole club now."