6 ms·

This is a complete speculation on my side, but could it be that anti skilled influencers are targeting a different business model? Namely, if they are being pai

This is a complete speculation on my side, but could it be that anti skilled influencers are targeting a different business model? Namely, if they are being paid to promote the products, their incentives would align with reaching as many people as possible. If that holds then we have people who focus on good trading vs people who focus on getting followers... and then the differences are snowballed by engagement algos.

JumpCrisscross 3y ago
> could it be that anti skilled influencers are targeting a different business model Yes, they're entertainment. Some people invest in the market for long-term returns. Same savvily trade short-term effects. Others are there to gamble, and their gains are first and foremost hedonistic. If you're playing the game to play, anyway, why not have a sassy MC? (To be clear, I have nothing against gambling. I do have a problem with promoters who muddy the line between it and investing by repeating conspiracy theories.)
sdflhasjd 3y ago
Also, it would make sense that they would be more likely to be paid for promoting poorer performing stock rather than what would be able to sell itself on its own merits.
RecycledEle 3y ago
I noticed several decades ago that companies preaching that gold was a good investment were selling gold. Why would you sell something that was a good investment? Why not hold onto it yourself? The answer is that when someone wants to dump a lot of gold, they hire a company to reach out to doomers and sell them gold. Same for used time-shares, investments in farms, etc.
- HFguy 3y ago
  I'm pretty sure this isn't true regarding gold. I.e., that some firm has a lot it wants to dump and then spends money convincing people to invest in gold. Gold is liquid, and the vast majority of it is not held for investment purposes. That is, even if you convinced some people to invest in it, it would not matter much regarding the price. And consider the costs involved in getting people to actually consider and then act on this recommendation? But if you have a reference link that refutes this, please provide it.
  - yzydserd 3y ago
    >”vast majority of it is not held for investment purposes.” “Vast” may be going too far. Each year, gold acquired for investment or by central banks is about the same as that acquired by the jewellery industry. Not the greatest link, but a section down the page shows gold demand in 2022 was jewellery 46.58% and investment plus central banks 46.85%. Tech makes up the remainder. I’m sure a better googler could attain a better reference. https://www.statista.com/statistics/299609/gold-demand-by-industry-sector-share/#:~:text=Global%20gold%20demand%20share%20by%20sector%202022&text=The%20jewelry%20industry%20accounted%20for,after%20investment%20demand%20in%202020 https://www.statista.com/statistics/299609/gold-demand-by-in.... For whole world gold holdings, the picture is similar with 46% in jewellery and 39% in either private investment or state holdings. https://www.visualcapitalist.com/sp/chart-how-much-gold-is-in-the-world/ https://www.visualcapitalist.com/sp/chart-how-much-gold-is-i... I suppose it comes down to perceptions of the words vast and investment. Some jewellery is held as investment, and state holdings are more than just investment.
- devoutsalsa 3y ago
  Good is a non-productive asset. If you buy gold and just hold it, you earn nothing, especially if the price never goes up. Good just sits there tying up your money. If you buy gold low from people willing to sell at a discount (e.g. cash for below market gold jewelry), then you sell at full retail value, you’re making money.

JumpCrisscross 3y ago

> could it be that anti skilled influencers are targeting a different business model Yes, they're entertainment. Some people invest in the market for long-term returns. Same savvily trade short-term effects. Others are there to gamble, and their gains are first and foremost hedonistic. If you're playing the game to play, anyway, why not have a sassy MC? (To be clear, I have nothing against gambling. I do have a problem with promoters who muddy the line between it and investing by repeating conspiracy theories.)

sdflhasjd 3y ago

Also, it would make sense that they would be more likely to be paid for promoting poorer performing stock rather than what would be able to sell itself on its own merits.

RecycledEle 3y ago

I noticed several decades ago that companies preaching that gold was a good investment were selling gold. Why would you sell something that was a good investment? Why not hold onto it yourself? The answer is that when someone wants to dump a lot of gold, they hire a company to reach out to doomers and sell them gold. Same for used time-shares, investments in farms, etc.

HFguy 3y ago
I'm pretty sure this isn't true regarding gold. I.e., that some firm has a lot it wants to dump and then spends money convincing people to invest in gold. Gold is liquid, and the vast majority of it is not held for investment purposes. That is, even if you convinced some people to invest in it, it would not matter much regarding the price. And consider the costs involved in getting people to actually consider and then act on this recommendation? But if you have a reference link that refutes this, please provide it.
- yzydserd 3y ago
  >”vast majority of it is not held for investment purposes.” “Vast” may be going too far. Each year, gold acquired for investment or by central banks is about the same as that acquired by the jewellery industry. Not the greatest link, but a section down the page shows gold demand in 2022 was jewellery 46.58% and investment plus central banks 46.85%. Tech makes up the remainder. I’m sure a better googler could attain a better reference. https://www.statista.com/statistics/299609/gold-demand-by-industry-sector-share/#:~:text=Global%20gold%20demand%20share%20by%20sector%202022&text=The%20jewelry%20industry%20accounted%20for,after%20investment%20demand%20in%202020 https://www.statista.com/statistics/299609/gold-demand-by-in.... For whole world gold holdings, the picture is similar with 46% in jewellery and 39% in either private investment or state holdings. https://www.visualcapitalist.com/sp/chart-how-much-gold-is-in-the-world/ https://www.visualcapitalist.com/sp/chart-how-much-gold-is-i... I suppose it comes down to perceptions of the words vast and investment. Some jewellery is held as investment, and state holdings are more than just investment.
devoutsalsa 3y ago
Good is a non-productive asset. If you buy gold and just hold it, you earn nothing, especially if the price never goes up. Good just sits there tying up your money. If you buy gold low from people willing to sell at a discount (e.g. cash for below market gold jewelry), then you sell at full retail value, you’re making money.