Olivo Barbieri
By timestaff
May 31, 2013

A new set of forces holds sway over your stock portfolio: Twitter and Facebook.

Evidence of social media’s power to move markets came on April 23, when the Dow fell 150 points after a hijacked Associated Press Twitter account falsely reported explosions at the White House.

Twitter and Facebook are now sources of legitimate financial news too. After investigating a 2012 Facebook FACEBOOK INC.


FB
0.22%

post from Netflix NETFLIX INC.


NFLX
2.12%

that sent its stock up, the SEC ruled in April that publicly held companies could make disclosures via social media.

Expect more tweets about profits — and more difficulty following the market.

Long-term investors should tune out Twitter, says Stamford, Conn., financial planner Matthew Tuttle. Actively trading stocks? Set up a watch list of ticker symbols using an app like HootSuite.

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