FINANCIAL FOCUS: WELCOME TO THE WORLD OF INTERNET INVESTING

This "Financial Focus" column is prepared by Edward Jones Investments, headquartered in St. Louis. Jones includes branches throughout the nation, including Cape Girardeau and Jackson.

Is cyber-investing in your future? Would you like to locate the nearest financial-service office, calculate how much money you'll need for retirement or monitor the performance of the stocks in your portfolio?

For an increasing number of investors, the answer is "yes." About 24 million people in the United States and Canada are already online, and that number is expected to grow to nearly 200 million by the year 2000. many of these people want access to the latest financial information in a manner that is fast and efficient, and the Internet offers a way for investors to bring Wall Street right into their own homes and offices.

As the demand for online financial information grows, more and more financial-services firms are responding with Web sites on the Internet. During a visit to a firm's "home page," investors can select from a wide range of information and services. You'll find everything from current stock market quotes and commentary, to branch-office locators, schedules of local events, offers for free literature and research reports, and even career opportunities. Other features include e-mail capabilities that enable users to correspond directly with the firm's headquarters or local branch offices, and interactive pages that enable users to calculate earnings potential, future income needs, future college costs and more.

An increasing interest among many online investors is the ability to review their account information and to buy or sell investments on the Internet. However, concerns about the security of confidential information, limitations in gaining access to account information and trading capabilities on high-volume trading days because of capacity-strained computer systems have dampened some investors' enthusiasm for these features.

In addition, while being able to trade securities day or night at the touch of a button may sound tempting, a word of caution is necessary. History has shown that investments held for the long term provide the most attractive results. This means investors must be disciplined enough to avoid letting short-term market events affect their long-term investment strategies.

Just as owning a medical dictionary doesn't enable laymen to diagnose their low illnesses, neither should online trading cause serious investors to refrain from consulting with financial professionals. Buying or selling a specific investment is usually the simplest dimension of the investment process. Far more important is the relationship between investors and their financial advisers, and the decisions that evolve from their consultations. Assessing an investor's risk tolerance, establishing objectives and weighing the strengths and weaknesses of myriad investment alternatives are critical roles played by professional financial advisers.

Wise investors use high-tech financial Web sites as a complement to the one-on-one relationship they have established with their personal investment representative. They use the sites as a source from which to gather information and research ideas, ultimately relying upon their investment professional to help them evaluate those ideas and determine the most appropriate strategies based on their own long-term financial goals and objectives.

In short, financial expertise and knowledge play an essential role in the broader context within which investment decisions and transactions are made. Internet sites are a valuable addition to the broad assortment of services offered by most investment firms and, used wisely, can be a useful asset to an investor's strategy.

The Southeast Missourian does not recommend that readers buy or sell stocks featured in this column, which is provided for informational purposes only.