"Markets are conversations" is the central theme of the 1999 book, The Cluetrain Manifesto, which predicted that the internet was about to unleash new ways for people to communicate with each other.

This Cambrian explosion of conversations would inevitably allow businesses to be a part of them creating a new dynamic of brand and customer interaction.

The book says as the internet proliferated throughout the world, new channels such as websites, forums, chat groups and email would revolutionise how consumers and businesses interact.

Noticeably the authors failed to predict the rise of blogs, podcasts, online video and social media platforms, as well as the smartphone revolution and its accompanying apps.

They also failed to predict the major cultural and political impact social media would have (and is still having) on society too.

Predicting the future is hard and anything beyond five years is just a guess.

The world was a different place in 1999 yet The Cluetrain Manifesto provided (an underestimated) glimpse into the changing paradigm that was heading our way.

Financial markets are conversations too

Another trend on the horizon is the coming together of mobile, social media and the financial markets.

A perfect storm is brewing between smartphone apps that provide easy access to the markets and the formation of communities and influencers who can collectively manipulate the price of a financial asset like a stock or crypto.

These apps are giving people around the world access to high profile stocks, ETFs and commodities on well-known indexes like the Nasdaq, S&P and FTSE.

You don't have to be rich to use them either. You can buy a fractional share of a stock meaning you don't have to buy a whole one but instead a fraction of one.

For example, a 19-year-old in Europe can invest in Tesla by buying a fraction of a Tesla stock. All within seconds and from the comfort of her home even though Tesla is an US company listed on a US exchange.

What's more, most of these apps don't charge a fee to buy and sell stocks so our budding investor can buy as little as £1's worth without having to pay a charge.

She can then brag to her friends about which 'super brand' stocks she owns such as Nike, Visa, Apple, Amazon and now Tesla, all for as much or as little investment she can afford.

The app that's received the most coverage in recent months is Robinhood. With 13 million users it's had a dramatic rise during the coronavirus pandemic as furloughed Americans invest their hard-earned money in the attempt to make more of it.

The app is not without controversy, of course, but Robinhood has given Americans access to the stock markets that was previously reserved for only a few. The video below outlines the story behind the app and why the founders created it.

https://www.youtube.com/watch?v=YL3rk5aWKcgThe Robinhood story

Financial apps in other countries are providing a similar service too. Trading 212 in the UK, Stake in Australia and INDmoney in India to name a few illustrate this is not just a US phenomenon but a growing global one too.

The proliferation of these apps come with risk and the occasional story in the media about an amateur trader who lost their life savings make the point. But it's the democratisation of the markets that seem the most interesting to me.

What does it mean when anyone anywhere can trade and invest in the same financial instruments as professionals do on Wall Street and in the City of London?

Unless there is some government ban there is not going back from here. The technological infrastructure is in place and communities of amateur investors are growing at a rapid rate.

This is more than just a passing but rather there is something more fundamental and long term taking place.

While we're still in the early days we're seeing a growing number of examples of where online communities and influencers are moving asset prices.