He said he hadn't been burned since he started doing the research himself. There are no exact figures for how many people are doing their financial research online. But Marc Johnson, senior analyst with research firm Jupiter Communications, said the number of families trading stock online had grown from 6.8 million last year to 9 million this year. The numbers are even more significant for mutual funds. A survey conducted last year by American Century Investments found that about half of mutual fund investors used the Internet to get information, up from 33 percent in 1997.
Specialized sites offer even more in-depth information for advanced investors.
Not long ago, it wasn't that easy to find reliable online information. Today an average investor is likely to find too much. Although Schappe thinks consumers should do research, not surprisingly he also thinks they need an expert to help. For his financial research, Westbrook spends an hour or two online each night. He starts his financial Web surfing at America Online, where he can track his portfolio and get a wide variety of financial information at the online service's personal finance area.