Not All Fear is Created Equal

And Why Detecting the Difference Matters

📌 The Quick Hit

• Fear isn’t always bad — some fear protects, some fear paralyzes.

• Healthy fear = compass (guides decisions). Unhealthy fear = cage (blocks progress).

• Rule of thumb: if fear leads to preparation, it’s healthy. If it leads to avoidance, it’s not.

• Becoming “CEO of your fear” turns emotion into action — helping you invest with clarity, not panic.

---

😱 Why Fear Trips Us Up

As I write this, US markets have reached all time highs. Yet, even when markets do well - and especially when they don’t - fear seems to be ever present.

As discussed in last week’s post, fear is the #1 barrier to investing. It shows up in many costumes:

• Fear of loss → we hate losing twice as much as we love winning.

• Fear of volatility → rollercoasters aren’t for everyone.

• Fear of failure → “What if I get it wrong?”

• Fear fueled by the media → endless headlines screaming crisis.

The problem isn’t fear itself. But whether it owns you, or you own it.

Obvious cliché = “No fear!” But, guess what…fear is not created equally.

🧭 Healthy Fear vs. Unhealthy Fear

Not all fear is created equal.

Healthy fear is a compass - it alerts and prepares you.

Unhealthy fear? It’s a cage - it holds you back without justification.

🔑 Rule of Thumb: If fear leads to preparation and action, it’s healthy. If it leads to avoidance or panic, it’s unhealthy.

Trying to eliminate all fear just doesn’t work.

---

---

🔎 Becoming CEO of Your Fear

Here’s how to flip fear into your ally. Become a your own Chief Examination Officer and use the AAQ Method:

1. Pause + Breathe. Fear thrives on rushing.

2. Examine. Ask yourself:

• In what way is this fear I feel helping me make a good investing decision?

• Is my decision (action or inaction) moving me toward my goals?

• What if I’m wrong? What are the consequences?

• Considering the above, what will I do now?

3. Decide with clarity, not panic.

💡 Example: You buy a stock, it drops 5% in two days. Fear screams “SELL!” But when you walk through the questions, you realize selling only locks in loss - while holding (and researching why it’s dropping) might align better with your long-term goals.

That’s CEO-level decision making.

✨ The Takeaway

Fear isn’t the enemy. In fact, it’s one of the best tools you’ve got - if you own it instead of letting it own you.

Healthy fear keeps you sharp, grounded, and prepared. Unhealthy fear keeps you stuck on the sidelines.

So the next time the market dips or a scary headline pops up, remember:

👉 Don’t fear the fear. Use it.

🎉 Fear as a friend or “ally”: Think of fear as that friend who’s always a little dramatic. Annoying? Yes. But sometimes, they’re the one who reminds you to grab your keys, double-check your seatbelt, or call your mom.

In investing, that’s exactly the voice you want - as long as you stay the one driving the car.

🚀 Next up:

Thursday - How to Build Globally Diversified Portfolio.

Sunday - How Money Buys Happiness.

This publication is for brains, not bets. The Other Side of Obvious shares ideas, stories, and general financial information—not personalized investment, tax, or legal advice. Investing comes with risk (including losing money). Talk to a pro before you act. Please take time to read these important disclosures before you get started.