Optimism bias can be explained better by looking at the investors' core beliefs. In this article, we will have a look at what the optimism bias is as well as how it affects the decisions being made by investors. However, when it comes to financial markets, a healthy dose of skepticism is not only necessary but also recommended by many experts. Optimists often live happier and healthier lives. The gist of optimism bias is often expressed by using the popular saying 'rose-tinted glasses.' In real life, it is helpful to be an optimist.
