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Social media investing advice breeds false confidence, study suggests

Original: Getting investing advice from social leads to false confidence

University of Georgia researchers warn that people who take investing advice from social media develop more confidence than competence. Their work indicates online tips make amateur investors feel sure of their decisions even when their actual financial knowledge and results do not improve. The findings add to concerns about how finfluencers and viral stock tips shape retail investing behaviour.

Why now: Retail investing on social platforms keeps growing, making research on its misleading confidence effects timely.

University of Georgiasocial media investorsfinfluencers

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