Wishful thinking is a cognitive process where individuals believe that something they desire will happen, despite evidence to the contrary. This mindset often leads people to overlook realistic outcomes and focus on positive possibilities. It can be a coping mechanism during difficult times, providing hope and motivation. However, wishful thinking can also result in poor decision-making. When people rely solely on their hopes rather than facts, they may ignore risks or challenges. This can be seen in various contexts, such as investing, health choices, or personal relationships, where unrealistic expectations can lead to disappointment.