TALKING FINANCE with Michelle Higgerson of Baiocchi Griffin Private Wealth HASHTAG FOOLED Let's be honest, when it comes to falling for the marketing of a snazzy website or glowing online review, we've all been there. What else should you think when you see words such as 'superior', 'trusted', or 'amazing job' splashed on the screen before you, coupled with glamorously professional photos. To demonstrate the unreliability of online reviews, British writer Oobah Butler famously created a fake restaurant listing on travel website TripAdvisor, and uploaded photos of his home-cooked meals, accompanied by glowing but fabricated reviews from friends. His fake restaurant eventually climbed to the number one position for top restaurants in London, and only after the long list of people begging for reservations became insufferable did he reveal that his restaurant was in-fact a hoax, demonstrating that sometimes words are not worth the paper (or screen) they are written on. The investment world is likewise not immune from marketing or advertising - often to the detriment of investors who are led to believe that an investment opportunity is safer, more profitable, or more personalised than it really is. The most common method seen in this area is cherry picking performance data, in which only a period where performance was higher than peers is promoted, while periods of poor performance are conveniently ignored. "Our investment was the top performer this year" would be less eye-catching if they added to the end of their sentence "... but one of the worst performers for each of the three years prior". However, another tactic gaining more traction in the new-age world is the use of 'influencer endorsements' on social media platforms. The problem with the use of influencers, or 'finfluencers', is that they operate in an unregulated environment and often blur the line between education and promotion. While the product or strategy they are promoting (often fast, attention-grabbing style content for complex financial products like options, derivatives or geared strategies) may sound suitable or appealing to you, the truth is your personal circumstances or your best interests haven't been considered by these people, and following their leads may result in disastrous outcomes. A general rule to follow is that if the associated risks or costs of an investment are glossed over by the promoter, and only positive and glowing reviews are available, then you should walk away. Neither of these marketing tactics are illegal, but it does stress the importance of taking an objective view of opinions prior to committing your hard-earned dollars. BAIOCCHI GRIFFIN PRIVATE WEALTH Level 1, 462-464 Peel St, Tamworth NSW 2340 6766 9000 AFSL No 424658 This article is general in nature and does not take your individual situation into account. You are advised not to act on anything contained herein, or discussed as a consequence of the contents of this document, without receiving financial advice from a suitably qualified person such as a financial planner, lawyer or accountant. 3334 Follow us on Twitter @BaiocchiGriffin Find us on Facebook facebook.com/Baiocchi GriffinPrivate Wealth www.bgprivatewealth.com.au TALKING FINANCE with Michelle Higgerson of Baiocchi Griffin Private Wealth HASHTAG FOOLED Let's be honest , when it comes to falling for the marketing of a snazzy website or glowing online review , we've all been there . What else should you think when you see words such as ' superior ' , ' trusted ' , or ' amazing job ' splashed on the screen before you , coupled with glamorously professional photos . To demonstrate the unreliability of online reviews , British writer Oobah Butler famously created a fake restaurant listing on travel website TripAdvisor , and uploaded photos of his home - cooked meals , accompanied by glowing but fabricated reviews from friends . His fake restaurant eventually climbed to the number one position for top restaurants in London , and only after the long list of people begging for reservations became insufferable did he reveal that his restaurant was in - fact a hoax , demonstrating that sometimes words are not worth the paper ( or screen ) they are written on . The investment world is likewise not immune from marketing or advertising - often to the detriment of investors who are led to believe that an investment opportunity is safer , more profitable , or more personalised than it really is . The most common method seen in this area is cherry picking performance data , in which only a period where performance was higher than peers is promoted , while periods of poor performance are conveniently ignored . " Our investment was the top performer this year " would be less eye - catching if they added to the end of their sentence " ... but one of the worst performers for each of the three years prior " . However , another tactic gaining more traction in the new - age world is the use of ' influencer endorsements ' on social media platforms . The problem with the use of influencers , or ' finfluencers ' , is that they operate in an unregulated environment and often blur the line between education and promotion . While the product or strategy they are promoting ( often fast , attention - grabbing style content for complex financial products like options , derivatives or geared strategies ) may sound suitable or appealing to you , the truth is your personal circumstances or your best interests haven't been considered by these people , and following their leads may result in disastrous outcomes . A general rule to follow is that if the associated risks or costs of an investment are glossed over by the promoter , and only positive and glowing reviews are available , then you should walk away . Neither of these marketing tactics are illegal , but it does stress the importance of taking an objective view of opinions prior to committing your hard - earned dollars . BAIOCCHI GRIFFIN PRIVATE WEALTH Level 1 , 462-464 Peel St , Tamworth NSW 2340 6766 9000 AFSL No 424658 This article is general in nature and does not take your individual situation into account . You are advised not to act on anything contained herein , or discussed as a consequence of the contents of this document , without receiving financial advice from a suitably qualified person such as a financial planner , lawyer or accountant . 3334 Follow us on Twitter @BaiocchiGriffin Find us on Facebook facebook.com/Baiocchi GriffinPrivate Wealth www.bgprivatewealth.com.au