{
  "id": 11006391,
  "title": "Social media may make investors feel more confident than they should",
  "url": "https://urgent.news/2026/09/30/social-media-may-make-investors-feel-more-confident-than-they-should",
  "topic": "health",
  "section": "Health & Medicine",
  "published": "2026-09-30T18:30:13.000Z",
  "source": {
    "name": "Futurity",
    "slug": "futurity",
    "url": "https://www.futurity.org/social-media-investors-3347552/"
  },
  "original_language": "en",
  "account": "A recent study reveals that social media may lead some investors to feel overly confident in their investment knowledge, even when it is lacking. Researchers discovered that individuals who turned to social media for investment guidance reported feeling highly knowledgeable but struggled to answer fundamental investment-related questions. In contrast, those who obtained their investment information from conventional sources like newspapers, magazines, TV, and radio felt equally confident yet demonstrated better understanding.\n\nLead author Xiaoyuan Sun, a doctoral student at the University of Georgia, highlights the abundance of information available to modern-day investors. However, he warns that relying on social media for investment advice may result in superficial knowledge and an inability to verify the suitability of investment products. Professor Swarn Chatterjee, the study's corresponding author, notes that while social media increases confidence, it does not necessarily enhance actual knowledge.\n\nTo assess the correlation between confidence and knowledge, the researchers analyzed data from two national surveys encompassing over 2,500 US adults with investments outside of retirement accounts. Participants rated their investment knowledge on a scale of 1 to 7, then answered 11 multiple-choice questions covering various investment topics, including stocks, bonds, risk and return, index funds, short selling, and options. Questions such as \"Have you ever purchased a 'meme stock' or other investment that was trending on social media?\" and \"Have you ever heard of bitcoin or cryptocurrencies?\" were included.\n\nApproximately 25% of respondents indicated using social media for investment information, while about 20% relied on it when deciding which stocks to invest in. Conversely, 75% of participants turned to traditional media for investment guidance. The study revealed that social media users tended to trade more frequently than those who relied on traditional sources. Fear of missing out (FOMO), driven by constant exposure to potential investment opportunities on social media, may contribute to this behavior.\n\nWhile social media platforms like YouTube and Reddit have made financial information more accessible, especially for those who found investing intimidating, they do not inherently provide accurate or comprehensive information. Financial professionals adhere to rules and regulations that guide their practices, while individuals on social media do not. Anyone can offer financial opinions on social media, leading to a potential loss of essential details in short videos and posts.\n\nThe researchers caution against dismissing social media entirely but urge investors to critically evaluate financial information found there. They compare this to seeking medical advice online, suggesting that professional guidance should be sought before making significant financial decisions. Chatterjee emphasizes the importance of investment knowledge and encourages caution when navigating the overwhelming amount of information available on social media. The study was published in the International Journal of Bank Marketing.",
  "summary": "\"Basically, we find that when people are using social media, it increases their confidence but not their real knowledge.\"",
  "key_points": [
    "Social media may create false confidence in investors' knowledge",
    "Traditional media users showed better understanding despite equal confidence",
    "Study warns against relying solely on social media for investment advice"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}