(InvestigateTV) — According to a Marketing Dive study, 81% of consumers said social media posts from influencers, friends or family members drove interest in an item or service within the past year.
But Michael Joyce with the financial firm CW Advisors said those looking to influencers and others for advice on financial investments should always know their “why”.
“You really have to ask yourself, ‘why am I investing in this?’” Joyce said. “Am I investing in this because other people are doing it and it’s a fear of missing out that they’re going to invest in it? You really want to think of what’s going to be the fundamentals that makes this investment rise in value.”
Joyce said it’s okay to try new investments, but investors need to do their research and not let emotions lead them. They should also research why something might rise or fall in value.
“If you want to invest in, say, Apple because you think that they’re going to be selling more iPhones in China over the next 10 years, that’s a fundamental to invest in it,” he observed. “If you’re investing in Bitcoin because your friends said it, or you read about it on a Reddit board that’s probably not a great reason to invest in crypto.”
Joyce advised consumers to match up their investments with their personal timeline.
For example, people with a newborn baby that want to save for college in 20 years can be more aggressive. But those with kids closer to college age don’t want a lot of volatility and should be more conservative in their investments.
Meeting with a financial advisor can help in every individual situation.
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