Hype Type Revealer - See your Informed tips and tricks

Bending the truth – what is 'information hype'? 

Every investment decision we make is based on the information available to us, and not all information is equal. But making good decisions is tougher if the info we’re given isn’t accurate. If what you’re being told about an investment doesn’t stack up, or it feels like you’re not getting the full picture, then it’s best to look elsewhere.  

Risking your money based on hyped info could soon turn your investment dreams into the stuff of nightmares. Next time you’re investing check multiple balanced sources.  

What lies behind info hype: misused & misunderstood information 

People factor - the ‘who’: we’re more likely to believe a message shared by someone we look up to and respect, like a social media influencer, sports star or celeb. Sometimes because we admire them, maybe we’re even envious of them, their appeal goes beyond what we know them for.  

That can give them wider credibility, even in things they might know nothing about, including investing. They might even stand to gain something from hyping-up an investment, for example through a paid promotion of ‘pump and dump’ scheme. And if friends and family are ‘getting in on the action’, we might be even more drawn in to follow the herd. 

Info factor - the ‘what’: with info hitting us from everywhere, we tend to focus on stuff that’s easy to remember. That can mean when investing we rely too much on messages from social media, sources that aren’t always accurate or give anything like the full story. 

It’s easy to be drawn in by hype about how an investment’s performed previously, how a similar investment’s done, or that we’re on hot streaks just because something’s gone well before. When you’re researching an investment, make sure the information you’ve got is from a range of balanced, neutral sources. 

Personalised pointers: be more informed 

Drop: Making investment decisions because the topic is hyped up, or lots of your friends are investing.  

Pick up: Researching whether the sources of your information are credible. Ask yourself: Why are they telling me this? What do they have to gain? Have they invested in it themselves? If you can comfortably answer all these questions, you might be onto a winner.