I found it very alarming to hear that FINRA is considering restricting access to leveraged ETFs. It is very concerning to hear that regulators believe private investors are incapable of understanding the risks associated with a leveraged asset like the ones that I utilize in my investment strategy. These investments undoubtably are more complex than an individual stock, but it is my belief that it is an individuals responsibility and right to assess the risks for themselves before investing their money in any asset including leveraged etfs. I do not think it is the role of any regulator to impose a knowledge test or any sort of prerequisite for any form of investor to utilize the investment products in question. I think there is a wealth of information at the investors disposal to determine whether the risk is appropriate for their own financial goals. Putting up barriers to utilizing these assets would negatively affect my personal investment goals and remove my ability to enhance my return during periods where I have deemed the risk acceptable. At the end of the day, private investors are investing their own assets and I think it is foolish to assume that these investors are entering the market ignorant of the potential of losing value of their assets no matter what asset type they decide to purchase.
Devin Conley Comment On Regulatory Notice 22-08
I found it very alarming to hear that FINRA is considering restricting access to leveraged ETFs. It is very concerning to hear that regulators believe private investors are incapable of understanding the risks associated with a leveraged asset like the ones that I utilize in my investment strategy. These investments undoubtably are more complex than an individual stock, but it is my belief that it is an individuals responsibility and right to assess the risks for themselves before investing their money in any asset including leveraged etfs. I do not think it is the role of any regulator to impose a knowledge test or any sort of prerequisite for any form of investor to utilize the investment products in question. I think there is a wealth of information at the investors disposal to determine whether the risk is appropriate for their own financial goals. Putting up barriers to utilizing these assets would negatively affect my personal investment goals and remove my ability to enhance my return during periods where I have deemed the risk acceptable. At the end of the day, private investors are investing their own assets and I think it is foolish to assume that these investors are entering the market ignorant of the potential of losing value of their assets no matter what asset type they decide to purchase.