Individual investors should be permitted to trade leveraged and Reverse ETF. One does not need to have a large amount of capital to have intelligence and the ability to understand and use these investment vehicles. Special tests or other special requirements should not exist which would limit individual investors access to these vehicles. and, under no circumstances should access be cut at the current extended downturn in the market. These are exactly times when leveraged ETF provide the best opportunity to make gains. Forcing investors out after this extended downturn would be like penalizing them with the opportunity to have leveraged losses without the opportunity to have leveraged gains.
I personally use leveraged ETF's to enhance gains by investing new and sidelined cash in them during periods when markets are clearly down to enhance my returns during those times in a relatively safe way. a lot safer than betting on individual company stocks. I personally do not use inverse ETF's because I do not like the idea of betting on markets going down. It just does not feel like a constructive thing to do to me. If feels like gabling to me and I do not gamble. There are plenty of investors that are comfortable with it though and they should be able to trade just like larger investors. Gamblers are going to gamble no matter what regulations are put in place and no matter what kind of test they may be required to pass. Legitimate investors should be restricted in an attempt to instil responsible behavior in irresponsible people.
Alan Meginnis Comment On Regulatory Notice 22-08
Individual investors should be permitted to trade leveraged and Reverse ETF. One does not need to have a large amount of capital to have intelligence and the ability to understand and use these investment vehicles. Special tests or other special requirements should not exist which would limit individual investors access to these vehicles. and, under no circumstances should access be cut at the current extended downturn in the market. These are exactly times when leveraged ETF provide the best opportunity to make gains. Forcing investors out after this extended downturn would be like penalizing them with the opportunity to have leveraged losses without the opportunity to have leveraged gains.
I personally use leveraged ETF's to enhance gains by investing new and sidelined cash in them during periods when markets are clearly down to enhance my returns during those times in a relatively safe way. a lot safer than betting on individual company stocks. I personally do not use inverse ETF's because I do not like the idea of betting on markets going down. It just does not feel like a constructive thing to do to me. If feels like gabling to me and I do not gamble. There are plenty of investors that are comfortable with it though and they should be able to trade just like larger investors. Gamblers are going to gamble no matter what regulations are put in place and no matter what kind of test they may be required to pass. Legitimate investors should be restricted in an attempt to instil responsible behavior in irresponsible people.
Thank You,
Alan Meginnis