The Misinformation Campaign  – November 2020

Tis the season to be misinformed.

Do not worry, I am not going on a political rant. The misinformation campaign is my reflection on reading “Personal Finance” blogs and “Investment Blogs”.

I have been looking for a group of kindred spirits. Other women who are experienced investors and write about investing. What they do, how they do it and what their advice is to other women.

I started down the misinformation path with no intention of “discovery” but I did discover two basic types of blogs and no kindred spirit, yet.

The first type of blog is written by women for women. “Personal Finance” covers a multitude of topics. Lots of advice on lifestyle choices, relationships. budgeting, planning and credit card debt. 

The actual INVESTING sections are where things get dicey.

On one blog I saw “How to Invest in Mutual Funds” and I lit up. Here it is! Someone else who is passionate about investing. Sadly, it was boiler plate language on what a mutual fund is. Nothing wrong with knowing what a mutual fund is but no useful information on HOW to invest in a mutual fund. What are the actual steps someone takes?

What is misinformation?

 Misinformation is making a mistake without the intent of fraud or harm. Like telling a friend you bought something at one store, only to remember later it was another store. Happens all the time.

Disinformation is making a mistake on purpose with the intent to cause fraud or harm.

My concern is the number of Personal Finance blogs and the misinformation that is presented as truth or knowledge by inexperienced individuals who claim to be experienced. 

There is no intent to defraud but for the unsuspecting individual misinformation in the investment arena can be costly to the investor.

Here is another example of misinformation “Mutual funds are exchange traded funds with lower fees”. It sounds perfectly reasonable. And it is perfectly wrong. You the reader would have no reason to question the statement.

In fact, there are significant differences between a mutual fund and an exchange traded fund, and it isn’t all about the fees.

Exchange Traded Funds – The Modest Economist®

One in a Million – The Modest Economist®   (Mutual Funds)

I do not believe the author intends to mislead anyone, the author is inexperienced and hasn’t done their research, thus making a statement that is just…. wrong.

When there are no “rules” or “regulations” as to the accuracy of information on a blog, look for the lengthy disclaimers before you invest. Why?

In the investment world, there are highly educated and professional investors who have blogs and there are people who think it is okay to say anything. 

The “serious” investment bloggers know the rules and are quite familiar with the Securities and Exchange Commission. 

Thus, the lengthy disclaimers regarding investment advice. 

The second type of investment blog is written by men for men. There is not much thought given to including women as contributors or writers.

This is exactly why women who are blogging on finance and investing must get it right.

Misinformation, not doing basic research or saying anything that sounds good, might be entertaining and get you a lot of subscribers but it does not help women become successful investors.

That is what we need to become. Successful investors.

This website is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, nor does it constitute an offer to provide investment advisory or other services by The Modest Economist LLC.