M.
I appreciate your insight. While that is certainly a valid concern, I prefer to look at the positive side, and hope that there is no 'serious' market downturn. I don't think a correction, even 10%, will hurt these companies.
Besides, look at it this way, they are just clearing houses. As far as I know, they don't do stock deals, like IPO's or be a market maker, etc... They aren't going to lose their shirt in bear market.
Plus, if things turn bad, what are people going to do with their stocks? Sell them, right? That means more commissions (which they take out before they cut you a check), etc....
Also, I dont' keep much cash in my account. It's all in securities, so if they do go under, I believe my securities are safe. Is that correct? I may lose any cash in the account, but that's minimal.
I noticed that you frequent the 'Short Picks' site, so I can only assume that you play that game. If that assumption is correct, it doesn't surprise me that you are worried about an eventual demise.
If you are a short, I hope you had shorted Cendant (CD) last week!
Take care,
Michael |
