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David Dutton Comment On Regulatory Notice 22-08

David Dutton
N/A

I am very distressed to learn that someone is considering to place restrictions and hurdles to overcome for my ability to trade inverse mutual funds. Following advice of my financial advisor and educating myself about the S + P 500 index/inverse index, I have been using the strategy for several years. I AM PLEASED WITH THE RESULTS. I know the risk and reward of using inverse funds. To my knowledge, every mutual fund company that offers inverse funds has VERY CLEAR, FORCEFUL warnings about using them. People do not need to be protected from themselves. This is a free country. If there are hundreds of thousands of people who lost money using inverse funds, start a massive education campaign. By-the-way, there are millions and millions of people (including professional fund managers) that regularly lose money using every mutual fund under the sun.
Please do not take this investment tool away from me, or make me jump through flaming hoops to continue managing 10% of my portfolio this way. My financial advisor has shown me that using proper trading days of the month, this strategy has produced 14.4% average annual return, and in the last 15 years, only 2 negative years. 2001 and 2008. Do you remember what happened to the market those 2 years?