New research has revealed that 21% of investors aged 18-34 get stock tips and market forecasts from Instagram. This shows just what a sway the social media platform has on young people.
These findings came from Opinium Survey, who questioned of 2,000 people.
Other social media platforms also ranked highly amongst young people, with 16% looking at Facebook, 14% sourcing ideas from Reddit and even 8% on TikTok.
According to the survey, financial websites are the number one source of investment ideas across all age groups. After that people turn to friends and family for stock tips. Although this happens less for men and older investors.
Older investors aged 55+ most likely group to depend on themselves for investment ideas.
Other sources of ideas are different amongst different cohorts, with women more likely to ask friends and family for idea and guidance, while men and older investors prefer to trust their own judgement. After that, newspapers and specialised financial publications are a source of ideas across men and women of all ages – though less so with younger investors who prefer to turn to social media for ideas.
Were There Regional Differences?
Regionally there are few differences – most investors across the UK prefer the same sources for ideas – although people in the East Midlands at 39% and London at 33% trust friends and family for investment ideas far more than those in Wales and the West Midlands at just 17% and 11% respectively!
Of course, the most important factor when looking for investment ideas – regardless of your source – is that they are right for you, and your personal financial plan. Those readying themselves for retirement probably shouldn’t be invested in the same portfolio as a Gen Z investor who is in their first job.
Does Risk Play A Part?
You also need to consider your risk appetite, investment horizon and what you may already be invested in before acting on any investment ideas. Ensure a good mix of sectors, regions and styles in your investment portfolio, to help build ballast to weather choppy markets.
Emma Wall, head of investment analysis and research, at Opinium Survey, said: “While engagement with investing should be applauded at any age, taking tips from unregulated or unverified sources, such as social media, should be done with caution. Always take time to do additional due diligence on any ideas. If you are at a pivotal life event – retirement, marriage, becoming a parent, and you are really short of investment ideas, consider getting professional advice before taking the plunge.”
Note: you should always seek professional advice before investing.