Financial & Real Estate Influencers: Can they be trusted?

Have you noticed a shift in your perception of financial or real estate influencers?

Lately, I've found myself viewing them as increasingly dishonest, biased, and driven by self-interest. They often come across as salesmen rather than trustworthy educators.

The hidden motivations behind their a is often disguised and designed to lead you into making decisions that ultimately benefit them. Whether it's a course, financial product, or real estate property, what initially appears to be interesting and educational content often turns into intentional monetization.

Often I ask this question: "Can we trust their objectivity?"

Some historical data can support their claims, but it's crucial to remember that past performance is not always indicative of future results. Influencers frequently use historical data to create a confirmation bias, presenting a skewed perspective. Sometimes, it's not just supply and demand driving asset values but also factors like monetary inflation from excessive money printing. Macroeconomic conditions often play a significant role in the rise of investments. They oversimplify facts to garner more views and interests.

There are risks of blindly following influencer advice.

Consider this: regardless of where you invest, staying invested in your preferred asset can generally yield decent results. But what if the advice is wrong? Will these influencers be held accountable? I doubt it. Responsibility is often deflected, leaving viewers to bear the consequences. 

I recall a financial influencer recently being bullish on the S&P, despite clear signs of an impending recession. He fervently encouraged his followers to invest in stocks like Nvidia, creating a FOMO (fear of missing out) effect. 

Another influencer promoted the FIRE (Financial Independence, Retire Early) movement, only to lose financial stability due to changes in CPF SA rules. Yet, he continued to advocate the same path, potentially leading others into financial hardship.

I'm particularly concerned about the young and vulnerable, who are often susceptible to quick monetary schemes and may lack the experience or capital to invest wisely. Poor advice can set them back significantly, using up their precious savings.

How do we then discern right from wrong advice?

I urge investing in personal knowledge. Once you have it, don't stay silent. Call out questionable advice. Challenge these so-called prudent investment tips, but build your expertise first. This way, you can protect yourself from those who prey on irrational beginners. Notice how they often have caveats to safeguard themselves.

The true nature of influencers is that they're experts when it's convenient for them—when they make a sale. But when things go wrong, they claim to be just like any normal person who makes mistakes, despite initially presenting themselves as educators. That's pretty irresponsible, and thus there has to be accountability.

What starts as purely educational content often turns into a pursuit of greed when influencers see an opportunity to monetize. Their objectivity gets compromised for personal gain.

My final thoughts: It's crucial to call them out, especially for the benefit of young viewers today. Let's protect ourselves and others by being informed, critical, and vocal about the misleading advice that abounds in the world of financial and real estate influencers.