This paper seeks to assess whether depressed people have distorted perception and whether suffering depression has an impact on holding of risky financial assets. Using The Survey of Health, Ageing and Retirement in Europe (SHARE), the empirical results support the conjectured hypothesis: depressed people have more pessimistic perception of reality. When we looked at households’ risky assets investment decisions, we find that they are less likely to hold risky assets when their members suffer depression. We provide some evidences to show that risk aversion may be the plausible channel for this association. We also argue that the effect of depression would depend on the combination of spouses’ risk attitudes and relative bargaining power in the household. In particular, change in wife’s risk attitude (which might be affected by depression) would determine whether the household buys risky assets when she has more bargaining power, while if the household already possess risky assets, change in husband’s risk attitude (which might be affected by depression) would determine whether the household sell them or not, when he has relatively more bargaining power.