theglobeandmail.com
Finfluencers Rise Amid Market Volatility: Balancing Access to Advice with Risks
Matt Shoss, a 21-year-old student, lost \$13,000 in his investment portfolio in early April, but his TikTok video advising against panic selling garnered nearly a million views, highlighting the rise of finfluencers who provide financial guidance on social media, especially to young Canadians managing their own investments, but also raising concerns about potential scams.
- What is the impact of finfluencers like Matt Shoss on young investors navigating market volatility, considering the increasing reliance on social media for financial information?
- Matt Shoss, a 21-year-old student, lost \$13,000 in April but used TikTok to advise his 60,000 followers against panic selling, garnering nearly a million views. His approach, combining tough love and basic investing principles, resonated with viewers seeking financial guidance during market volatility.
- What measures can be implemented to mitigate the risks associated with finfluencers providing financial advice, balancing the benefits of accessible information with the potential for misinformation and scams?
- While offering accessible financial advice, finfluencers also present risks. A recent study revealed investors following finfluencer advice were 12 times more likely to be scammed. This highlights the need for critical evaluation of online financial information and responsible content creation.
- How do the strategies and approaches of finfluencers, such as providing jargon-free explanations and personal experiences, differ from traditional financial advisors, and what are the implications of these differences?
- Shoss's success exemplifies the rise of 'finfluencers' who fill a gap in financial advice, particularly among young Canadians increasingly managing their investments independently. A 2024 survey showed 53 percent of Canadians use social media for investment information, rising to 82 percent among younger investors.
Cognitive Concepts
Framing Bias
The article's framing tends to be positive towards finfluencers, emphasizing their growing popularity and the demand for their services. While acknowledging potential risks, the overall tone suggests that finfluencers fill a crucial gap in financial education, particularly for young investors. The headline (if there was one) could influence reader perception, potentially downplaying the inherent risks associated with following online financial advice. The article frequently quotes finfluencers with optimistic views on market volatility, giving their perspectives more prominence than the cautions raised by financial professionals.
Language Bias
While largely neutral, the article uses language that sometimes leans towards a positive portrayal of finfluencers. Phrases like "having their moment to shine" and "finding their reach—and responsibility—growing fast" subtly suggest approval. Conversely, descriptions of the risks are presented more cautiously, but not excessively negatively. The overall tone, however, is relatively balanced in its presentation of arguments from various sides.
Bias by Omission
The article focuses heavily on the rise of finfluencers and their impact, but omits discussion on the regulatory landscape governing financial advice online and the potential legal ramifications for both creators and viewers. It also lacks a detailed examination of the potential for financial exploitation of vulnerable viewers. While it mentions scams and securities law violations, it does not delve into the prevalence or specific mechanisms of such exploitation.
False Dichotomy
The article presents a somewhat false dichotomy by contrasting finfluencers with traditional financial advisors, implying that one is inherently superior to the other. It highlights the accessibility and ease of understanding offered by finfluencers, but does not fully address the potential risks and lack of personalized advice inherent in their approach. The article also presents a simplistic view of the choice between finfluencers and traditional advisors, neglecting the possibility that a combination of both could be beneficial for many investors.
Gender Bias
The article features both male and female finfluencers, and does not overtly display gender bias in its language or representation. The focus remains primarily on their financial expertise and impact, rather than on gender stereotypes.
Sustainable Development Goals
The article highlights the role of financial influencers in providing free financial education to a wider audience, particularly young people and those who may not have access to traditional financial advisors. This contributes to reducing inequality by democratizing access to financial information and empowering individuals to make better financial decisions.