Fake news can lead to bad investment decisions

By Dale Gillham. Published at Feb 12, 2021, in Features

The term “fake news” became mainstream during the 2016 US election campaign, as false or heavily biased stories were distributed on hundreds of websites and across social media.

This issue has now become a global problem, as it challenges the way we share information and perceive the world around us.

Only yesterday, I typed into Google the search term “trending stock market news” and I was surprised to see a listing with the title “Amazon releasing a new platform”.

After clicking on the link, I was taken to a news website, which led with the statement “Amazon launches their newest platform to help families become wealthier”. I started reading the article with interest until I got to the point where it stated that Amazon could transform anyone into a millionaire within 3 to 4 months. At that point, my interest changed to one of suspicion.

Rather than being a service delivered by Amazon, it was a fake news site with propaganda designed to misled investors.

Late last year there was also a questionable website using the reputation of Dick Smith to entice people to trade their hard-earned money to generate huge returns. Of course, it was fake news designed to take money from hard working individuals.

So, while we are all responsible for the decisions we make, I have to question whether this type of marketing is fair?

While we are all familiar with the statement buyer beware, this can present challenges if a website looks credible and uses the credibility of a company or an individual to attract people to buy goods and services.

That said, if something sounds too good to be true, it probably is.

Therefore, when it comes to the stock market, my advice is to always use credible news sites to get your information and to always check who you are dealing with.

If a website is asking you to invest or subscribe to an investment product, do your research to confirm if they are licensed in Australia, as the regulators will have little recourse in helping you if something does turn out to be fake news.

Dale Gillham is Chief Analyst at Wealth Within and international bestselling author of How to Beat the Managed Funds by 20%. He is also author of the award winning book Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in all good book stores and online at www.wealthwithin.com.au


View Our Investment Portfolios


S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X