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Adam Jacobs Comment On Regulatory Notice 22-08

Adam Jacobs
N/A

FINRA Regulators:

While I understand the concern of heightened risk posed by leveraged securities, I am alarmed at the proposed measures restricting investment into these publicly traded leveraged securities, especially requirements related to net worth, because these types of investments allow the type of returns necessary for lower net worth individuals to attain financial success, and increase their net worth. These types of investments promote greater equality in our society and are one of very few vehicles that ordinary people have to grow their wealth. This is especially important as we enter this period of inflationary growth, where prudent investments are necessary to defend our assets from erosion. Please reconsider the proposed restrictions in terms of promoting an inclusive and equitable market system.

Additionally, inverse leveraged funds are an important strategy that I use to defend my assets during market pull backs.

I teach both of these investment strategies to my children, and while the volatility of these funds are great, the aggressive growth possible makes them well worth the risk for younger investors.