Monday, October 13, 2008

Discount Securities Ltd was naked

Just over 2 months ago, I did a little post looking at how leveraged NSE brokers were. DSL stood because as at the end of 2007, it had done 300 times as much business as it had capital which was just asking for trouble.

Lo and behold, today "its under management of KPMG" an euphism for being under receivership. I still worry about Apex because of its leverage and AIB because things are not good.

Seeing many say its good to diversify, moving brokers or having more than one broker at a time is not a bad strategy.

The title alludes to WB's famous saying about only being able to tell who was swimming naked when the tide goes out i.e. when markets fall.

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