TORONTO, ONTARIO -- (Marketwired) -- 08/24/13 -- A study released today by BMO InvestorLine has found that, despite the increasing popularity and adoption of social media, Canadian investors still rely on traditional news media as sources for investing information and advice.
According to the study, more than half (57 per cent) of investors rely on traditional media sources, whereas only one-third look to social media for information. The specific media platforms used as sources by investors include:
-- TV news and business news shows (36 per cent)-- Print editions of newspapers and magazines (30 per cent)-- Online editions of newspapers and magazines (24 per cent)-- An online investing service provider (22 per cent)-- Online financial communities and forums (22 per cent)-- Radio (12 per cent)-- Facebook (9 per cent)-- Blogs (7 per cent)-- Mobile investing app (5 per cent)-- Twitter (4 per cent)-- LinkedIn (3 per cent)
"It's interesting to see that, while an increasing number of Canadians have been embracing social media for a variety of reasons, investors still prefer more 'traditional' media sources for the information and advice they need," said Viki Lazaris, President and CEO, BMO InvestorLine. "Regardless of where you get your investing information, do your due diligence and ensure it's coming from a reputable source."
When asked how much Canadian investors trust these platforms, the study found that, on average, traditional media sources were trusted by 61 per cent of investors, while social media sources were trusted by 24 per cent. Specifically:
-- More than two-thirds (69 per cent) find TV news and business news shows trustworthy.-- More than half (55 per cent) find print and online editions of newspapers and magazines trustworthy.-- Almost half (48 per cent) find radio trustworthy.
However, for social media:
-- Only 21 per cent find blogs trustworthy as a source of investment information.-- Less than 20 per cent find LinkedIn trustworthy.-- Thirteen per cent feel that Facebook is a legitimate source for investing insights.-- Just 12 per cent find Twitter trustworthy as a source of investment information.
Ms. Lazaris noted that BMO InvestorLine offers various tools, research and educational sources to help investors make informed decisions, including:
-- Quotes+: An industry-leading tool that provides investors detailed information and research on equities, mutual funds and Exchange Traded Funds (ETFs) in one central location. Clients have access to the technical analysis of a security's price performance, comprehensive equity research resources and a wealth of in-depth mutual fund information.-- Markets and News: BMO InvestorLine provides clients with daily Canadian market commentaries and news headlines, analyst opinions, upgrades/downgrades and earnings warnings.-- ETF Screener & Compare Tool: Investors are able to search, compare, and access comprehensive data on a broad range of ETFs, including top ten holdings, historical performance returns and full quote details.-- Morningstar Credit Reports: Investors can access Morningstar Credit Reports for over 300 North American-listed companies, including 20 Canadian companies. BMO InvestorLine is the first online brokerage to offer this resource.-- Canadian and U.S. Pick Lists: Published by Morningstar and S&P Capital IQ respectively, these lists provide clients with equity investment ideas north and south of the border including most attractively valued Canadian large cap and top dividend-paying Canadian equities. Investors can also access detailed equity reports for each company listed on the Pick Lists.-- Equity Research Reports: InvestorLine provides investors with unbiased investment perspective on North American equities with research reports from Morningstar, S&P Capital IQ and Ford Equity Research.
The results cited in this report come from an online survey fielded by Pollara between July 26th and 30th, 2013 with a sample of 1,020 Canadians 18 years of age and older. Overall results for a probability sample of this size would be accurate to +/- 3.1%, 19 times out of 20.
To learn more about online investing, please visit www.bmoinvestorline.com.
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BMO InvestorLine Inc. and BMO Ligne D'action Inc. provide this commentary to clients for informational purposes only. The information contained herein is based on sources that we believe to be reliable, but is not guaranteed by us, may be incomplete or may change without notice. The comments included in this document are general in nature, and professional advice regarding an individual's particular position should be obtained. BMO InvestorLine Inc. is a member of BMO Financial Group.
® Registered trade-mark of Bank of Montreal, used under licence. BMO InvestorLine Inc. is a wholly owned subsidiary of Bank of Montreal Holdings Inc. Member - Canadian Investor Protection Fund and IIROC.
Amanda Robinson, Toronto
Valerie Doucet, Montreal
Laurie Grant, Vancouver