Look at the US stock market's performance over the past few years. In such an environment, it made sense that the public's interest in stock trading increased. But in the year 2000, after Internet brokers entered the market to service that new clientele, for the first time in more than five years, the US stock market indices are actually lower. Understandably, investors are getting more selective about their investments, and that means they will need counsel and advice. Welcome back the traditional stockbroker.
More evidence comes from the performance of different stock brokerage firms.
Meanwhile, the traditional firm of Merrill Lynch is at 60, up 20 percent on a split-adjusted basis this year. Paine Webber is up 75 percent this year on news that Union Bank of Switzerland is buying the company. But read into that.