Your proposed regulations of inverse and leveraged funds are unnecessary. The prospectuses already give adequate warning of the risks involved in these investments. Your proposed regulation would prevent people like me from benefiting from the investment strategies offered by inverse and leveraged funds. The use of these types of funds also provide a way for IRAs to short markets. Without these funds, I would not be able to short markets in my IRAs to hedge my portfolio in times of down markets. I used these types of funds in a limited way to short particular markets for a short period of time and use leverage when I am confident of a short-term move. These types of funds make it easy for a small investor to take advantage of important investment strategies.
Eric Marshall Comment On Regulatory Notice 22-08
Your proposed regulations of inverse and leveraged funds are unnecessary. The prospectuses already give adequate warning of the risks involved in these investments. Your proposed regulation would prevent people like me from benefiting from the investment strategies offered by inverse and leveraged funds. The use of these types of funds also provide a way for IRAs to short markets. Without these funds, I would not be able to short markets in my IRAs to hedge my portfolio in times of down markets. I used these types of funds in a limited way to short particular markets for a short period of time and use leverage when I am confident of a short-term move. These types of funds make it easy for a small investor to take advantage of important investment strategies.