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Discount brokers with Internet sites have taken market share from full-service brokers in 1998, and many have also entered the underwriting business, as well. Goldman Sachs and Co had planned to go public, but this may not occur, and there is the possibility that the financial services reform bill may be enacted in 1999. These stocks should be avoided by conservative investors as they are not timely for 1999 or through the next three to five years.

US investors have turned to US Treasury investments and have left the equities and bond market due to the Asian financial crisis, which has subsequently spread to Russia. This and the probable slowing of the US economy in 1999 have had an effect on the securities brokerage industry. These stocks are less timely in Nov 1998 than they were in Nov 1997, but they are expected to outperform the market in 1999.

The securities brokerage industry continues to experience growth opportunities during 1998. Expansion throughout the US economy, low interest rates and negligible inflation have contributed to the favorability of underwriting and trading functions. Profits for the securities brokerage industry are extremely high.

The Securities Brokerage Industry has experienced strong growth as the bull market continues during 1998. Brokerage firms have undergone much consolidation, which has further benefitted brokerage company stocks. These trends are not expected to change, although brokerage stocks are not recommended for long-term growth. The industry is considered to be volatile.

The securities brokerage industry had higher earnings in 1996 and 1997 than it did in the years 1988 through 1994, and these stocks have outperformed the market. Profits are expected to remain high in the near future, although not at the level from 1994 to 1997. The industry is timely for 1998, but the potential for appreciation over the next three to five years is not high, and investors may want to consider future developments before commitment.

Arizona would have saved between $50,000 and $75,500 if it had purchased state and local government seres securities from the Treasury Department instead of open market Treasury securities from Rauscher [...]