Finding the Best Finfluencers: Do Not Follow the Crowd
- By Sam van de Schootbrugge
- 5 min read
Summary
-
- A popular Swiss Financial Institute research paper, co-authored by UC Berkeley researchers, reveals the importance of following the right Twitter accounts.
-
- It finds that only a quarter of ‘finfluencers’ generate positive abnormal returns for their followers. Worryingly, over half generate losses.
-
- Clearly, picking winners from losers is not easy for the Twitter crowd, as most follow finfluencers with poor track records.
-
- Typically, the worst finfluencers tweet more often, are overly optimistic, and ride return momentum. In contrast, skilled finfluencers are return-, sentiment-, and news-contrarian.
This article is only available to Macro Hive subscribers. Sign-up to receive world-class macro analysis with a daily curated newsletter, podcast, original content from award-winning researchers, cross market strategy, equity insights, trade ideas, crypto flow frameworks, academic paper summaries, explanation and analysis of market-moving events, community investor chat room, and more.