Why Optimism Is Dangerous for Your Financial Well-Being

2 min read

Optimism has become a cult these days. Both mainstream and social media outlets strongly encourage their readers, viewers, and listeners to keep believing that everything will be fine no matter what. This largely happens because optimism is easy to “sell”. It gives you hope in almost all situations even when objective and unbiased analysis and data often show that there is no hope whatsoever. So what? The thing is that a recent major study demonstrates that optimism is actually dangerous for your financial well-being (“Looking on the (B)right Side of Life: Cognitive Ability and Miscalibrated Financial Expectations”, Chris Dowson, School…...

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Olegs Jemeljanovs, PhD, CFA A seasoned professional in the field of financial markets, investments and economic analysis with the crucial mix of private and public sector experience (large international lenders, private boutique banks, ministry of finance, central bank, financial regulator). Able to cover macroeconomic and microeconomic trends, short-term market moves and long-term economic cycles, the role of biology and psychology in finance. Have held both front-office, sales and analytical positions. If you want complex economic, financial, political, historical, sociological and psychological concepts to be explained in a simple and accessible way then you have certainly found the right website. If your consider the sense of humor to be important then you have definitely found the right man.