The rise of social media and finance

"BOOYAH!" "Sell," screamed Jim Cramer, the host of "Mad Money." "Exit Hewlett Packard and Best Buy immediately." Ironically, both companies surged upward in the opposite direction, more than 100 percent, six months after Cramer's call in 2012.

"One thing I know, that I know nothing. This is the source of my wisdom," stated Socrates in fifth century BC. If only the talking heads in the financial media outlets lived by this quote. Regardless, there's a whole new set of social media tools that can help you combat the hype.

A few weeks ago, my office phone was ringing off the hook during the "Greek tragedy" referendum. "What should we do about Greece," stated stressed clients on the other end of the phone. It's fascinating how a tiny country with less than a fraction of the world's economy, half way across the globe can spark panic in global markets. Talking heads on TV, or as I like to say, the "Doctors of Doom," just add fuel to the fire.

An entire industry has emerged to engage the fears of individual investors. The predictions are often inaccurate, but they certainly have an impact. News networks need to fill 24 hours a day with stories from the Federal Reserve, The White House, earnings reports, Caitlyn Jenner, and, yes, rampant speculation.

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