Leveraged funds have enhanced my returns, and I've only used them on a small portion of my investments, having had excellent results. As a retired broker and individual investor, I shouldn't need to have the government looking over my shoulder to determine for me what is an appropriate investment. There are far more egregious situations that are routinely ignored by those in the upper echelons of finance that need policing. Imposing more regulation on what I do with my smaller amounts wouldn't result in anything except regulation for regulations sake, and possibly take away a valid investment alternative. Consider instead, worrying about the creation by investment banks of synthetic securities (once again leveraging their assets to the tune of trillions of dollars). Now that's something worth considering more regulation on.
Ellen Hull Comment On Regulatory Notice 22-08
Leveraged funds have enhanced my returns, and I've only used them on a small portion of my investments, having had excellent results. As a retired broker and individual investor, I shouldn't need to have the government looking over my shoulder to determine for me what is an appropriate investment. There are far more egregious situations that are routinely ignored by those in the upper echelons of finance that need policing. Imposing more regulation on what I do with my smaller amounts wouldn't result in anything except regulation for regulations sake, and possibly take away a valid investment alternative. Consider instead, worrying about the creation by investment banks of synthetic securities (once again leveraging their assets to the tune of trillions of dollars). Now that's something worth considering more regulation on.