Many investors live on fearing the worst.
What are investors fearing most right now?
According to Bank of America, the top four concerns are a bubble in AI, inflation, disorder in the bond market, and geopolitical conflicts (translation: war).1
You may have those fears or other ones, but know that fear is a normal emotion for investors.
Some handle it better than others. The best investors are not ruled by it.
You must understand the risks you are taking in your portfolio and the purpose behind it, but you must also fear fear. The cost of living in fear can be significant, and it’s hard to drown out fear when there is so much fearmongering. One investor said it like this:
Skeptics or cynics always sound smarter…Optimists live in bigger houses.2
The US stock market has shown how if you let fear guide your investment decisions, you would have a hard time investing because there have been many crisis events throughout the decades.3
Fear of investing $10,000 in the S&P 500 in the 1970s means you don’t have the $3,800,000 from compound growth in 2026.
The fear of losing money in stocks can be costly.
There is another frightful emotion to look out for too.
Not the fear of missing out on the worst, but the fear of missing out on the best.
This can lead investors to buy into hype and regret it.
For example, in the short-term, SpaceX shows how FOMO can negatively affect investors.
The long-term story of SpaceX may still be phenomenal, but it’s not so fun right now for those who bought it way over its IPO price, especially if you thought the payoff would be immediate.
Fear is a very human emotion. Just be careful that it doesn’t rule your investing life or your life life.
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Sources:
1. Chart from Blaine Rollins “Weekly Research Briefing” on July 21, 2026. Accessed online.
2. Quoted on the Meb Faber show via X published July 22, 2026. Accessed online.
3. Chart taken from First Trust’s “Market’s in Perspective” published in July 2026. Accessed online.