CHICAGO - Americans have seen their retirement savings shrivel, home equity evaporate and job security vanish. The only numbers zooming upward seem to be gas and food prices.

It might look like there's nothing to smile about, but that shouldn't stop us, said Ed Die-ner, a psychology professor at the University of Illinois at Urbana-Champaign who has been studying happiness for more than a quarter-century. Here's what he wants you to know: That disappearing 401(k) balance? It's no more a barometer of sadness than winning the lottery guarantees life satisfaction. It's all a matter of perspective.

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Ed Diener, a professor of psychology at the University of Illinois and the co-author of the book “Happiness: Unlocking the Mysteries of Psychological Wealth,� spends time with his grandchildren, Alex Yannelli, 4, (left) and Caroline Yannelli, 9, at his home in Salt Lake City, Utah.

He is no blithe guru spray-painting smiley faces along Wall Street. Researchers such as Die-ner are trying to convey what philosophers have long written: True happiness lies in the pursuit of deeply held goals, not in fleeting pleasures and possessions.

We intuitively understand the common-sense distinction between short-term pleasure and long-term happiness. Research suggests the brain also processes those feelings differently - although exactly how the mind creates abiding happiness is unclear.

Diener is co-author, with his son, Robert Biswas-Diener, of the new book "Happiness: Unlocking the Mysteries of Psycho-logical Wealth.'' He is part of the positive psychology movement that started about two decades ago and bypasses the Freud model of disease and dysfunction, focusing instead on emotional hardiness.

In their view, psychological wealth includes relationships, spirituality ("not necessarily religion ... but the feeling you are connected to something larger than yourself''), physical health and a sense of engagement.

What separates those with psychological wealth from miserable peers is their ability to adjust. "That means controlling what is controllable ... diversifying your stocks, then returning to the areas of your life that are going well, such as friends and family,'' he said. "It means making a conscious decision to be resilient.''

It takes strong character to find happiness in the face of adversity, but scientists often have found that aspect too vague a topic to study. Understanding how the brain processes raw feelings of desire and pleasure is far easier. Most creatures seek pleasure in some way. Pleasure motivates us to seek food, sex and a multitude of things that ensure the survival of an individual or species.

"There's an enormous evolutionary advantage to getting pleasure from these things,'' said Martin Cassell, a professor at the University of Iowa. "The more long-term aspects of what causes happiness are much less well understood.''

Diener, 62, also known as "Dr. Happy,'' and his son, Robert, a psychologist and lecturer at Portland State University, have traveled all over the world, collecting data on well-being from tens of thousands of subjects in more than 100 countries.

Whether in the gold markets of Dubai or the Australian outback, the scientists have learned that happiness goes beyond genes and circumstances.

We require enough material wealth to be self-sufficient, the psychologists believe, but the levels of contentment do not dramatically increase after our needs are met. While there is a spike after a major acquisition - like a new car - the euphoria over leather seats doesn't last.

The same is true with setbacks: Watching one's nest egg dwindle is enough to pull anyone into a deep hole, but a year later, people typically rebound.

CHICAGO - Americans have seen their retirement savings shrivel, home equity evaporate and job security vanish. The only numbers zooming upward seem to be gas and food prices.

It might look like there's nothing to smile about, but that shouldn't stop us, said Ed Die-ner, a psychology professor at the University of Illinois at Urbana-Champaign who has been studying happiness for more than a quarter-century. Here's what he wants you to know: That disappearing 401(k) balance? It's no more a barometer of sadness than winning the lottery guarantees life satisfaction. It's all a matter of perspective.

"There are people who have little money and are quite happy ... and then there are people who feel poor making $150,000 a year,'' Diener said. "If we ratchet down some of our aspirations and expectations, we can find contentment - even in a slowing economy.''

He is no blithe guru spray-painting smiley faces along Wall Street. Researchers such as Die-ner are trying to convey what philosophers have long written: True happiness lies in the pursuit of deeply held goals, not in fleeting pleasures and possessions.

We intuitively understand the common-sense distinction between short-term pleasure and long-term happiness. Research suggests the brain also processes those feelings differently - although exactly how the mind creates abiding happiness is unclear.

Diener is co-author, with his son, Robert Biswas-Diener, of the new book "Happiness: Unlocking the Mysteries of Psycho-logical Wealth.'' He is part of the positive psychology movement that started about two decades ago and bypasses the Freud model of disease and dysfunction, focusing instead on emotional hardiness.

In their view, psychological wealth includes relationships, spirituality ("not necessarily religion ... but the feeling you are connected to something larger than yourself''), physical health and a sense of engagement.

What separates those with psychological wealth from miserable peers is their ability to adjust. "That means controlling what is controllable ... diversifying your stocks, then returning to the areas of your life that are going well, such as friends and family,'' he said. "It means making a conscious decision to be resilient.''

It takes strong character to find happiness in the face of adversity, but scientists often have found that aspect too vague a topic to study. Understanding how the brain processes raw feelings of desire and pleasure is far easier. Most creatures seek pleasure in some way. Pleasure motivates us to seek food, sex and a multitude of things that ensure the survival of an individual or species.

"There's an enormous evolutionary advantage to getting pleasure from these things,'' said Martin Cassell, a professor at the University of Iowa. "The more long-term aspects of what causes happiness are much less well understood.''

Diener, 62, also known as "Dr. Happy,'' and his son, Robert, a psychologist and lecturer at Portland State University, have traveled all over the world, collecting data on well-being from tens of thousands of subjects in more than 100 countries.

Whether in the gold markets of Dubai or the Australian outback, the scientists have learned that happiness goes beyond genes and circumstances.

We require enough material wealth to be self-sufficient, the psychologists believe, but the levels of contentment do not dramatically increase after our needs are met. While there is a spike after a major acquisition - like a new car - the euphoria over leather seats doesn't last.

The same is true with setbacks: Watching one's nest egg dwindle is enough to pull anyone into a deep hole, but a year later, people typically rebound.