THE FEAR FACTOR

The Fear Factor — How Risk, Uncertainty, and Panic Shape Market Decisions Fear — The Oldest Emotion in the Newest Markets From Survival Instincts to Stock Market Sabotage Fear is not a new emotion, but in the world of investing, it has found a new battleground. In prehistoric times, fear was crucial—it kept our ancestors alive. It taught them to run from danger, to avoid risk, and to anticipate harm. That same fear—embedded in the amygdala of our brain—still governs us today, but in the modern context, it often acts against our best interests. The brain cannot differentiate between the sound of a predator in the bushes and the sudden drop in the stock market. Both are registered as threats. Both trigger the same flight-or-fight response. This ancient system that once ensured physical survival is now repeatedly sabotaging financial survival. Investors panic, sell low, avoid risk even when the odds are in their favor, and miss opportunities for growth—all because the brain is wired...