The Rational Reminder Podcast · Thursday, August 6, 2026
Barry Ritholtz criticizes the impact of short-form social media platforms like TikTok and Instagram on investors, stating that algorithms reward extreme emotional pitches. He notes the IRS had to issue a press release debunking 42 false claims found on TikTok and Instagram, some of which could lead to penalties.
“And what's even worse today is that on social media and elsewhere, the algorithm rewards the loudest and most extreme emotional pitches. The feed from Pick Your Favorite Cancer. Twitter, LinkedIn, Instagram, TikTok, go down the list. Outrage and excitement tends to feed right into what that algo is providing people.”
“The IRS had to issue a special 42-point press release debunking 42 separate things on TikTok and Instagram. That if you followed them, not only were they wrong, some of them would cost you penalties and fines, others would cost you a clawback and interest.”