When someone thinks they can easily reverse financial troubles by abandoning investments, which kind of reasoning are they applying?

The reasoning being applied is characterized as wishful thinking. This type of reasoning occurs when an individual believes that a desired outcome can be achieved simply by hoping for it or by making a decision based on unrealistic expectations. In the context of believing that one can easily reverse financial troubles by abandoning investments, the individual is likely ignoring the complexities of financial markets and the potential consequences of such actions.

Wishful thinking often leads to overly optimistic beliefs and decisions that are not grounded in reality. In this scenario, the person may wish for a quick solution to their financial woes and, as a result, underestimates the importance of strategic planning and diligent management of their investments. This indicates a reliance on hope rather than a rational assessment of the situation, which is characteristic of wishful thinking.

In contrast, the other reasoning types, such as radicalism or prejudice, do not directly align with the scenario of making impulsive financial decisions based on an unrealistic belief in the simplicity of reversing problems. Causal simplification also does not fit here, as it typically involves incorrectly correlating cause and effect in a more substantive manner rather than simply wishing for a favorable outcome.