Using the Internet to assist investment decisions.

• Author: Zorn, Paul

In early 1996, a survey conducted by the GFOA and MBIA Insurance Corporation on the use of technology by public finance officials found strong interest in the use of on-line technology to enhance the investment function in state and local governments. The survey showed that a substantial portion of GFOA members who have Internet or other on-line access use it to obtain information about economic activity and the financial markets. Specifically, 41 percent of members with on-line access use it to obtain economic information, 38 percent use it to obtain general financial market information, 32 percent use it to track newsworthy events, and 15 percent use it to obtain investment quotes or other information about current interest rates. The purpose of this article is to present useful information to state and local government finance officers regarding the application of the Internet for investment purposes.

The GFOA publication Investing Public Funds(1) devotes a chapter to the importance of establishing an investment outlook in order to improve administrative communication and to take advantage of investment opportunities (and avoid potential pitfalls) that result from a changing investment climate. Key to establishing such an investment outlook is access to information about the investment markets, including general financial news, interest rates, and economic data. Most of this information is readily and freely accessible on the Internet. A number of specific Internet sites that offer information that may be useful in investment decisions are presented below. Readers should note that the inclusion of a specific Internet site in this article does not constitute the Government Finance Officers Association's endorsement of the site or its provider. Readers must judge the usefulness and applicability of each site for themselves.

General Financial News

Access to information about current financial events provides investment managers with a way to understand the day-to-day dynamics of the financial markets and helps to monitor short-term investment trends. There are a large number of general financial news sites on the Internet, many of which are free. The following is a small sample of the available sites.

Money On-Line (http://pathfinder.com/@@uwigMwQAVCWssezl/money). Money Magazine's on-line site provides a wide variety of business and financial information, including financial news summaries, investment quotes (delayed 15 minutes), an on-line financial bookstore, and a "best rates" page...