Rather than limiting access to these products, perhaps increase education on them. Leveraged products are not discussed in any academic curriculum on neither a high school level nor university level. Word of mouth is the most common way for people to discover leveraged products. When I was first entering the markets at the ripe age of 15, one of the first investments I was told about was DWTI - the Direxion inverse 3x leveraged crude oil ETF. Watching it swing 20% in a week taught me a lot about risk management and capital gains. When I asked my teachers about it, they had no idea a leveraged ETF existed. It made me realize how little the country really knows about the depth of trading products, given that we are force fed the "set it and forget it" propaganda from the likes of Vanguard. Those who endorsed this notion have no one to blame but themselves for retail investors being ignorant to trading products such as these.
It is also a gross violation of our freedom as a consumer in the country. As an American it is my god given right to spend my money however I please, whether its on a bowl at Chipotle or a few shares of UVXY. Net worth requirements? Cool-off periods? Regulator imposed tests? However you paint it, this is an egregious declaration of war on the working class who are using the means available to them to obtain wealth and ascend to the upper class of society. Depriving them of access to this tool helps no one but yourself and your fear that democracy may finally find its way into the labyrinth that is Wall Street.
Please allow leveraged products to remain available. Adding legal hoops does more harm than good for all involved.
Hudson Hoffman Comment On Regulatory Notice 22-08
Rather than limiting access to these products, perhaps increase education on them. Leveraged products are not discussed in any academic curriculum on neither a high school level nor university level. Word of mouth is the most common way for people to discover leveraged products. When I was first entering the markets at the ripe age of 15, one of the first investments I was told about was DWTI - the Direxion inverse 3x leveraged crude oil ETF. Watching it swing 20% in a week taught me a lot about risk management and capital gains. When I asked my teachers about it, they had no idea a leveraged ETF existed. It made me realize how little the country really knows about the depth of trading products, given that we are force fed the "set it and forget it" propaganda from the likes of Vanguard. Those who endorsed this notion have no one to blame but themselves for retail investors being ignorant to trading products such as these.
It is also a gross violation of our freedom as a consumer in the country. As an American it is my god given right to spend my money however I please, whether its on a bowl at Chipotle or a few shares of UVXY. Net worth requirements? Cool-off periods? Regulator imposed tests? However you paint it, this is an egregious declaration of war on the working class who are using the means available to them to obtain wealth and ascend to the upper class of society. Depriving them of access to this tool helps no one but yourself and your fear that democracy may finally find its way into the labyrinth that is Wall Street.
Please allow leveraged products to remain available. Adding legal hoops does more harm than good for all involved.