While I believe that no one should invest in anything they do not understand, I do feel that any investor should be allowed to invest in any publicly available investment without restriction. Today, stocks are overvalued, rates and inflation are rising, and the government is printing money like never before. Will it all end badly? Of course it will, but if you put restrictions in place on what an investor can buy, such as an inverse ETF as a hedge, you limit the options a small investor has.
Think about it, the federal tax code is thicker than a stack of phone books but I could do my own taxes if I wish but I wouldnt be able to buy some investments that would go on my tax return? Investing involves risk, anything you buy could be worth less than what you paid for it when you go to sell. Im sure no one would care if I bought 100 shares of QQQ (Nasdaq 100) if I thought the market was going up. But suppose I thought the market was going down and I wanted 100 shares of PSQ (inverse Nasdaq 100). No sorry, thats a "complex product" you dont understand and cant have. Please do not impose restrictions on the small investor!
John Ross Comment On Regulatory Notice 22-08
While I believe that no one should invest in anything they do not understand, I do feel that any investor should be allowed to invest in any publicly available investment without restriction. Today, stocks are overvalued, rates and inflation are rising, and the government is printing money like never before. Will it all end badly? Of course it will, but if you put restrictions in place on what an investor can buy, such as an inverse ETF as a hedge, you limit the options a small investor has.
Think about it, the federal tax code is thicker than a stack of phone books but I could do my own taxes if I wish but I wouldnt be able to buy some investments that would go on my tax return? Investing involves risk, anything you buy could be worth less than what you paid for it when you go to sell. Im sure no one would care if I bought 100 shares of QQQ (Nasdaq 100) if I thought the market was going up. But suppose I thought the market was going down and I wanted 100 shares of PSQ (inverse Nasdaq 100). No sorry, thats a "complex product" you dont understand and cant have. Please do not impose restrictions on the small investor!