Investment - Articles - One in three retail investors influenced by social media


New research from Willis Owen reveals 34% of UK retail investors have made at least one change to their investments over the past 12 months as a result of announcements made via social media channels. Some 9% claim to have made at least five investment changes because of this, and 2% have made more than 10.

 When it comes to gender, the findings reveal 43% of male investors have made at least one social media influenced change to their investment portfolios over the past 12 months compared to just 21% of female investors who have done this.

 On an age basis, younger investors, who tend to spend more time on social media, are more influenced by it when managing their investments, than older investors. Some 45% of investors aged 35 – 44 have made one or more social media influenced change to their portfolios over the past 12 months, compared to just 15% of those aged 65 and over.
 

 Social media is also having a significant impact on institutional investors. A recent survey (2) by Greenwich Associates reveals almost 80% of institutional investors use social media as part of their regular workflow. Approximately 30% of these investors say information obtained through social media has directly influenced an investment recommendation or decision.

 Adrian Lowcock, Head of Personal Investing at Willis Owen, said: “There is no doubt social media has joined traditional financial news media as a key source of information for investors. This probably helps explain why President Donald Trump has 61.3 million followers on Twitter!

 “In the past, successful investment decision making was based on information gathered through traditional media, professional advice and thorough research, but social media offers an immediacy which can impact markets in the short term and influence investors.

 “However, they need to pay careful attention to sources, as there is a greater risk of being taken in through ‘fake’ news, than with some more traditional media sources.”
  

Back to Index


Similar News to this Story

PIMFA brands FSCS Indicative Levy as unsustainable
Reacting to FSCS’ announcement of a budgeted levy of £635 million, PIMFA, the UK’s trade body for the personal investment services and financial advic
ESAs proposals on PRIIPs is going from bad to worse
Insurance Europe has serious concerns about the review currently being undertaken of the Packaged Retail Investment and Insurance-based Products (PRII
Cat modelling is crucial key to unlocking cyber ILS capacity
The financial impact of a future global software failure could be so great that the (re)insurance industry is likely to require additional capacity fr

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.