Internet stock trading is the talk of the Money Show

Brian Seals

Thursday, May 14, 1998 | 10:32 a.m.

Michael Hough stood among hundreds of investors at Bally's hotel-casino waiting to see the exhibits offered at the 10th annual Money Show, an investment educational seminar.

"I'm just looking for better tools," he said. "I do an awful lot of trading on the Internet and I want to learn about picking better funds and stocks."

He wasn't alone. More than 9,000 people were expected for the four-day seminar that features a plethora of workshops and about as many exhibits hawking new products, investment firms and estate planners.

And these weren't novice investors. They were the savvy market players looking for that one piece of information or advantage that could bolster their holdings. And to that end, the much-discussed tool of the day was the Internet.

"I'm trying to learn more about investing on-line," said John Clarke of Tujunga, Calif. "I do everything on-line."

Throughout the day the Internet revolution was lauded as leveling the playing field for the lay-investor as compared to the professional broker. Lewis Levin, Microsoft Corp. vice president of desktop finance, called current times the Golden Age of investing.

"The gap between the professionals and you has never been smaller," Levin said during a midday address.

Levin said households on the Internet have grown 300 percent. About 25 percent of households in the United States are on-line. Moreover, about 17 percent of total trading volume is done over the Internet and roughly 4 million Americans have on-line brokerage accounts, said Levin.

The advantage, of course, is a steady stream of real-time price quotes as well as an array of sites that track trends of stocks, mutual funds and industry sectors.

The Internet and the seemingly never-ending string of new outlets focusing on finance have information availability at an all-time high. That kind of information has its advantage and disadvantages, though. Sure, the average person has the data available to most brokers. But can that daily information diet allow for the old Warren Buffet philosophy of long-term, steady growth?

Readily available negative information may make the squeamish investor prone to sell at the slightest market ripple.

"I think it tends to and you do have to be careful," Clarke said. "Not just the Internet, but cheap transaction costs as well."

Yet while that may apply to the individual investor taking charge of one's own financial domain, it's not likely to cause overall market volatility. And the average investor may not be as panicky as the pro when it comes to changes in the market.

"I bet you the individual doesn't panic as much as the professional," Michael Bloomberg, founder and CEO of Bloomberg L.P. Investment Strategies, said following his address.

Bloomberg said Internet use in the investment world would continue to grow. It has given buyers the opportunity to compare ideas and strategies.

While years ago the Internet was generally embraced by white college-aged males, people using the personal computer as a financial-planning tool tend to be older. Kim Githler, who along with husband Charles runs the company that sponsors the show, said the average attendee tends to be 55 or older.

"We're the ones who saved our money and have something to invest," observed Anna Biesinger of Salt Lake City in between sessions.

And while older investors are often thought of as more conservative, nobody was singing the blues about any possible end to the bull market of the last 18 years or so. In fact, most attendees seemed to believe the booming stock market will continue.

Most concerns expressed were minimal. "It's difficult to buy stocks that already seem to be overpriced," Clarke said.

But investors like Hough see good times ahead. "I'm not overly concerned about the market," he said.

Nor was Biesinger, who said that her real estate business in Utah shows no signs of slowing and she expects the same from the stock market.

Many have predicted a market slowdown, but it has been a forecast that has not come to pass. The Dow Jones Industrial Average has risen from 777 in August 1982 to the 9,000 range in recent weeks. Naysayers say it will be difficult for companies to continue to increase earnings at the rate they have been.

"There may not be enough business to go around," said Bloomberg, whose address offered both reasons why the bull market could continue and reasons why it could falter.

This week, though, investors are looking at ways to increase their earnings while the market is strong.

Since 1988, attendance at the Money Show has grown 32 percent, Githler said. Las Vegas is one of five cities where the shows are held and tends to draw more people because it is a tourist destination, Githler said. She added most of the attendees manage their own portfolios, which include an average five mutual funds. Eighty percent of those attending owning individual stocks.

"They are basically doing this as their business," Githler said.

The seminar continues through Friday.