Asset managers and financial advisers are increasingly being influenced by social media posts and stock market news, making it harder for them to provide professional advice to clients. A global market survey highlights this Aotek Financea provider of risk and return management solutions for professional investors.
The survey found that nearly all (95%) wealth managers and financial advisors said they were influenced by social media activity related to the stock market and stocks. Only 4% said they were not influenced at all.
More than nine in ten (93%) wealth managers and financial advisors believe that social media’s influence on the stock market and specific stocks has made it more difficult to provide professional advice to clients.
Tessa Kuijl, Managing Director, Global Wealth Solutions, Ortec Financehe declared:
“Despite the many benefits social media offers, our research shows that the confusion surrounding it is a barrier for many financial advisers and wealth managers. Young people, in particular, are increasingly turning to social media as a source of information on everything from politics to DIY, and also using it as a source of financial advice. However, our research shows that social media is having a negative impact on many financial advisers and wealth managers themselves and is hindering their ability to provide sound professional advice to their clients.”
The survey was conducted by independent research firm PureProfile, which interviewed 100 wealth managers and financial advisers in the UK, Canada, Italy, the Netherlands, Germany and Switzerland, who manage around £1.207 billion in assets for clients. The survey was conducted in April.