I am currently using the SQQQ and SPXU 3x leveraged inverse funds to protect my stock portfolio during this market downturn. The SPY is down 14.11% and the QQQ is down 23.64% from their highs. My stock portfolio is down only 12.18% from my high. The 3x leverage allowed me to start later from the highs and use less funds for portfolio protection. Otherwise I would have had to sell more of my stocks and be less ready for positive growth when the market begins an upturn.
Note that portfolio protection is more important for retirees, such as I, than for people and organizations with substantially larger portfolios.
Note also that learning to use leveraged funds is far simpler than learning to use options for the same strategy.
Hence, I strongly feel that the use of leveraged and inverse funds should remain without regulation.
Edwin Dean Comment On Regulatory Notice 22-08
I am currently using the SQQQ and SPXU 3x leveraged inverse funds to protect my stock portfolio during this market downturn. The SPY is down 14.11% and the QQQ is down 23.64% from their highs. My stock portfolio is down only 12.18% from my high. The 3x leverage allowed me to start later from the highs and use less funds for portfolio protection. Otherwise I would have had to sell more of my stocks and be less ready for positive growth when the market begins an upturn.
Note that portfolio protection is more important for retirees, such as I, than for people and organizations with substantially larger portfolios.
Note also that learning to use leveraged funds is far simpler than learning to use options for the same strategy.
Hence, I strongly feel that the use of leveraged and inverse funds should remain without regulation.