Key insights
- The author argues that stock content creators who don't provide verifiable proof of their returns should be considered fraudulent. They suggest that these individuals could manipulate the market due to their growing influence. While the argument highlights potential risks, its direct impact on US equity markets is limited.
Conclusion first: when someone claims to have achieved a certain return, without clearly showing their actual account return, the size of the capital in that account, and proof that the account really belongs to them, then the public’s level of trust in what they say should be zero.
From a probabilistic point of view, it is obvious that reading the views of people with genuinely high returns is more useful than listening to those with low returns. But many content creators simply make up their returns and state them without providing any proof, and somehow a bunch of idiots still believe them. As their follower count grows and their influence expands, these people may, to some extent, gain the power to manipulate the market. That is extremely dangerous.
A genuine content creator should disclose their returns, at the very least their total account return, the size of their capital, and proof of ownership of the account. Otherwise, they could easily use multiple accounts with small amounts of money, pick the one with the highest return, and show you only that one. Everyone should understand this: if they cannot do these things, then they are frauds. No exceptions.