Despite the increasing popularity and adoption of social media, Canadian investors still rely on traditional news media as sources for investing information and advice, according to a new report from BMO InvestorLine.
The report reveals that 57 percent of investors rely on traditional media sources, whereas only one-third look to social media for information. The specific media platforms used as sources by investors include:
- TV news and business news shows — 36 percent;
- Print editions of newspapers and magazines — 30 percent;
- Online editions of newspapers and magazines — 24 percent;
- An online investing service provider — 22 percent;
- Online financial communities and forums — 22 percent;
- Radio — 12 percent;
- Facebook — 9 percent;
- Blogs — 7 percent;
- Mobile investing app — 5 percent;
- Twitter — 4 percent;
- LinkedIn — 3 percent.
“It's interesting to see that, while an increasing number of Canadians have been embracing social media for a variety of reasons, investors still prefer more 'traditional' media sources for the information and advice they need,” says BMO InvestorLine President and CEO Viki Lazaris. “Regardless of where you get your investing information, do your due diligence and ensure it's coming from a reputable source.”
When asked how much Canadian investors trust these platforms, the study found that, on average, 61 percent of investors trust traditional media sources, whereas 24 percent trust social media sources. Specifically:
- 69 percent find TV news and business news shows trustworthy;
- 55 percent find print and online editions of newspapers and magazines trustworthy;
- 48 percent find radio trustworthy.
However, for social media:
- Only 21 percent find blogs trustworthy as a source of investment information;
- Less than 20 percent find LinkedIn trustworthy;
- 13 percent believe that Facebook is a legitimate source for investing insights;
- Just 12 percent find Twitter trustworthy as a source of investment information.