Financial Advice on Social Media Is Growing. And Risky.

Published On Jan 25, 2025, 5:00 AM

The article discusses the growing influence of financial influencers, or 'fin-fluencers', in guiding everyday investors who are seeking financial advice. It highlights how individuals, like Amy Ryan, turned to social media for investment guidance during the market downturn in April 2020. These influencers often promote various financial products and strategies but face criticism and regulatory challenges due to concerns over misinformation and high-risk investments. The trend emphasizes the need for investors to critically evaluate the advice received from these influencers, as regulations in the space remain unclear.

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As more investors rely on social media for financial advice, the popularity of ETFs or stocks frequently promoted by influential figures may rise. Fin-fluencers could continue to impact retail investor behavior, suggesting a growing market segment for ETFs favored by them.

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