Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Sam Golden who wrote (7106)	10/24/1997 5:23:00 AM
From: tech	Read Replies (1) \| Respond to of 13949

Sam, I don't know if it is really because people are dumb, I think it has more to do with the ease of trading these days. Not too long ago you would see or hear news like Hong Kong story in the morning, then you would call your broker when the market opened to see what effect it had on your portfolio. At that time a voice of reason would be heard. Any experienced trader/broker would tell you do not sell into a unfound panic and if you had any stocks that might be exposed, such as multinationals, to move them into the number of quality stocks that had tanked due to the panic selling. These days it is just to easy to push a button, in some cases even before the market opens, and sell into the panic. Nightly Business Report, Wednesday, October 22, 1997 at 20:50 JEFF YASTINE: Well, thanks to on-line technology, buying a stock, bond ormutual fund now is as easy as clicking the mouse on your computer. The use of on-line trading is growing fast and many expect it to become even more widespread within the next few years. But will it make the stock broker an endangered species? Diane Eastabrook reports. DIANE EASTABROOK, NIGHTLY BUSINESS REPORT, CORRESPONDENT: On-line trading accounts for about 40 percent of discount broker Charles Schwab's business. Price is the primary reason. The fee for buying 1,000 shares of IBM stock on-line is under $30. Using a Schwab broker to execute the same trade costs nearly $270. JOHN VAN ERMEN, INVESTMENT SPECIALIST, CHARLES SCHWAB: The new investor may not be opening an on-line account. It's their first account but as they become familiar with the on-line and the resources that it provides, it is very easy for them to learn how to use it. EASTABROOK: The number of on-line investing accounts is expected to skyrocket from 3 million at the end of this year to more than 14 million by the year 2002. So where will that leave full service brokerage firms like Wayne Hummer Investments which has been in business since the great depression. William Hummer, the founder's son, expects the firm will keep growing because many investors will still want guidance from a professional before making investment decisions. WILLIAM HUMMER, PRINCIPAL, WAYNE HUMMER INVESTMENTS LLC: And what we can provide them is insights and an overall picture of where we think they should be heading and what they should be doing to achieve their objective. EASTABROOK: To compete with the Internet, broker Nick Tsicouris says brokers will need to keep educating themselves on investment strategies that will offer clients the biggest bang for their bucks. NICK TSICOURIS, BROKER, ROSEMONT INVESTMENT: There are corporate bonds Ginny Mae Pools. Products like Past due certificates. UITs. These are products that clients generally understand that exist, but don't really understand their working knowledge. EASTABROOK: Still, most brokerage firms aren't ignoring the Internet. Wayne Hummer has opened a web page with information about its firm and will soon offer customers information about their own accounts. Most of the large brokerage firms have been doing the same thing, and many are considering offering on-line trading. In fact, Merrill Lynch (NYSE:MER) will begin on-line trading next year. But even Merrill Lynch admits the full service brokerage business isn't likely to disappear any time soon. Because there will always be investors who will want the advice of a broker before they buy or sell a stock. Diane Eastabrook, NIGHTLY BUSINESS REPORT, Chicago. Today's trading will be very interesting. Keep an eye how the S&P futures open this A.M.