Passage
Let them now that fear the LORD say, that his mercy endureth for ever.
Let them now that fear the LORD say, that his mercy endureth for ever.
Psalms 118:2 Let Israel now say, that his mercy endureth for ever.
Psalms 118:3 Let the house of Aaron now say, that his mercy endureth for ever.
Psalms 118:4 Let them now that fear the LORD say, that his mercy endureth for ever.
Psalms 118:5 I called upon the LORD in distress: the LORD answered me, and set me in a large place.
Psalms 118:6 The LORD is on my side; I will not fear: what can man do unto me?
The verse centers on "mercy", "fear", "lord", "endureth", and "ever". It is saying that the verse draws attention to "mercy" and "fear", so its meaning should be read from those terms before moving to application.
The nearby context moves from verse 3's "Let the house of Aaron now say..." into verse 5's "I called upon the LORD in distress...", so "mercy" and "fear" belong inside that flow. In Psalms context, the local focus is worship, trust, the LORD's kingship, and covenant mercy.
A plain takeaway is to answer the verse's own emphasis on "mercy" and "fear" with trust shaped by these words, not by a vague optimism outside the passage.