Free World - September 15, 2021

A new generation of finance gurus with massive social-media followings are guidi…


A new generation of finance gurus with massive social-media followings are guiding stock-market newbies, tapping into young people’s innate distrust of the financial establishment.⁠⁠
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Rose Han, a 32-year-old with a finance degree from New York University, quit her job as a currency trader at HSBC five years ago and started making YouTube videos about options trading, fund investing and personal financial accounts. She now has half a million YouTube subscribers and more than 57,000 followers on her Instagram account, @investingwithrose. ⁠⁠
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“If you turn on CNBC, it’s all these older white guys, and it’s hard to relate to them because I don’t look like them; a lot of my followers don’t look like them,” said Han, who noted she has made $2 million so far this year from a combination of YouTube ads and sales of her own online finance courses.⁠⁠
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As Americans retreated to their couches amid the pandemic, millions of would-be stock pickers—some flush with stimulus cash—fired up social-media and messaging apps and dove headlong into the world of retail investing. Along with the rise of commission-free online trading has come demand for advice at the lowest price in the most accessible place: free, and online.⁠⁠
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Still, the online model is entirely new, with influencers judged on the content they produce, rather than their investing track records; and they often get paid based on numbers of subscribers and viewers, rather on the investment income their advice generates for clients.⁠⁠
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Many of these influencers have no formal training as financial advisers and no background in professional investing, leading them to pick stocks based on the whims of popular opinion or to dispense money-losing advice.⁠⁠
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Read more at the link in our bio.⁠⁠
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📷: Jake Naughton for @wsjphotos



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