Please do not take away my ability to make my own investment choices. My ability to choose my investments should be mine, not regulators. Leveraged and inverse funds should be available to all investors, not just the wealthy.
I should not have jump through hoops to be able to choose my own investments. Leveraged and inverse funds all have a warning about their volatility that is easy to see on their landing page. These are not difficult concepts to understand. "This fund attempts to have 2x returns based on an index for the day. Not intended for inexperienced or buy and hold investors." It's right there. We are adults and should be able to make our own choices. I don't need someone telling me that I'm not smart enough to understand the description of the leveraged or inverse fund I'm buying.
I should be allowed to make the investment choices that align with my belief about the market. I use leveraged funds primarily as a small part of my portfolio as a return enhancer by taking advantage of the day to day volatility in these funds. I'm not a professional, but I've done my research and developed my own system that takes advantage of daily fluctuations between sectors and the leveraged funds enhance those returns.
Ultimately, I understand that these investment vehicles may not be wise choices for many people, but it should be their right to buy them and lose money, just as they can in any other investment vehicle in the market. I would be really annoyed if I had to jump through additional hoops in order to be able to buy these investments.
At the absolute most (preferably regulators would keep their hands out of my investment account, but if they really feel they have to "protect" people....) Just require something similar to options trading where people get approved to invest in leveraged and inverse funds simply by stating they understand the risks and are choosing to engage in these types of investments.
It is not fair though to require a high net worth. And a "cooling off period" during which you can't invest is just time. Every smart investor knows that time in the market is the most important factor. Making people "cool off" is ridiculous. And, passing a test!? We're not investing for others. Just let us attest to our willingness to engage in higher risk investments and be done with it.
Andrew Sheldon Comment On Regulatory Notice 22-08
Please do not take away my ability to make my own investment choices. My ability to choose my investments should be mine, not regulators. Leveraged and inverse funds should be available to all investors, not just the wealthy.
I should not have jump through hoops to be able to choose my own investments. Leveraged and inverse funds all have a warning about their volatility that is easy to see on their landing page. These are not difficult concepts to understand. "This fund attempts to have 2x returns based on an index for the day. Not intended for inexperienced or buy and hold investors." It's right there. We are adults and should be able to make our own choices. I don't need someone telling me that I'm not smart enough to understand the description of the leveraged or inverse fund I'm buying.
I should be allowed to make the investment choices that align with my belief about the market. I use leveraged funds primarily as a small part of my portfolio as a return enhancer by taking advantage of the day to day volatility in these funds. I'm not a professional, but I've done my research and developed my own system that takes advantage of daily fluctuations between sectors and the leveraged funds enhance those returns.
Ultimately, I understand that these investment vehicles may not be wise choices for many people, but it should be their right to buy them and lose money, just as they can in any other investment vehicle in the market. I would be really annoyed if I had to jump through additional hoops in order to be able to buy these investments.
At the absolute most (preferably regulators would keep their hands out of my investment account, but if they really feel they have to "protect" people....) Just require something similar to options trading where people get approved to invest in leveraged and inverse funds simply by stating they understand the risks and are choosing to engage in these types of investments.
It is not fair though to require a high net worth. And a "cooling off period" during which you can't invest is just time. Every smart investor knows that time in the market is the most important factor. Making people "cool off" is ridiculous. And, passing a test!? We're not investing for others. Just let us attest to our willingness to engage in higher risk investments and be done with it.