Influencer Marketing

We are all aware of the rise in social media marketing involving endorsements by people and organizations who purport to have expert knowledge or social influence, largely based on name recognition and/or the number of followers. While there is a lack of consensus about what an influencer is, the most common characteristic is payment for their endorsement. It should also be noted that another important characteristic is a significant lack of specific expertise.

This may be ok for household products and fashion items.  But it is not ok for investment advice. Do you remember the high visibility influencers who actively promoted unproven crypto opportunities?

Investors should carefully vet the background and professional competence of prospective advisors.  Choosing a portfolio manager is a serious undertaking. There are several widely recognized designations that might be helpful in making a sound decision, including Chartered Financial Analyst (CFA), and fiduciary.

A CFA Charter is a globally-recognized professional designation given by the CFA Institute that measures and certifies the competence and integrity of financial analysts.

A fiduciary is a person or organization that holds a legal or ethical relationship that requires the prudent care of money or other assets for another person.

All comments and suggestions are welcome.

Walter J. Kirchberger, CFA