Jonathan Messimer Comment On Regulatory Notice 22-08
Jonathan Messimer
N/A
What makes are American economy and stock market great is the ability to choose how we invest our time, talent, and of course money. For many the idea of growing assets through investments is a beautiful mechanism and the reason we wake up ready for work every morning. I love the financial industry and have worked in it for many years. When working with clients, I always try to follow the rules and regulations set forth by FINRA and the SEC. These are both fine establishments attempting to maintain order in sometimes a chaotic world. As a financial professional I admit that yes leveraged and inverse products are complicated and can get some investors into trouble. However, companies that issues these products do an amazing job warning potential investors about the risks. I will admit that as a financial professional I own some these products in my own personal accounts. At the age of 33 I do so with the understanding that I am taking on a massive amount of risk. However, I understand that by playing with fire you sometimes get burned so I hedge my portfolio using other products that ironically FINRA and others may find to be controversial. However, using the appropriate allocations I feel that I have a well-balanced portfolio that generate substantial alpha and minimize my losses. Im going to leave you with this thought. Why, for example is it bad for an investor to buy 100 companies that are triple leveraged (i.e. TQQQ) yielding 41.31% over a 10y period, but it is okay for the same investor to buy one company and leverage that company using margin and be lucky if he gets a 10% yearly return over a 10 year period. I will argue that the second choice may seem like a foolish and unwise investment, but we allow it because people have the right to make that choice. With this ruling FINRA is essentially stating that they trust an investor more when an he or she buys one stock using margin than compared to the man or woman who buys 100 companies using leverage (TQQQ or QLD). I hope you make the right decision in allowing investors the freedom to choose how they build their wealth.
Jonathan Messimer Comment On Regulatory Notice 22-08
What makes are American economy and stock market great is the ability to choose how we invest our time, talent, and of course money. For many the idea of growing assets through investments is a beautiful mechanism and the reason we wake up ready for work every morning. I love the financial industry and have worked in it for many years. When working with clients, I always try to follow the rules and regulations set forth by FINRA and the SEC. These are both fine establishments attempting to maintain order in sometimes a chaotic world. As a financial professional I admit that yes leveraged and inverse products are complicated and can get some investors into trouble. However, companies that issues these products do an amazing job warning potential investors about the risks. I will admit that as a financial professional I own some these products in my own personal accounts. At the age of 33 I do so with the understanding that I am taking on a massive amount of risk. However, I understand that by playing with fire you sometimes get burned so I hedge my portfolio using other products that ironically FINRA and others may find to be controversial. However, using the appropriate allocations I feel that I have a well-balanced portfolio that generate substantial alpha and minimize my losses. Im going to leave you with this thought. Why, for example is it bad for an investor to buy 100 companies that are triple leveraged (i.e. TQQQ) yielding 41.31% over a 10y period, but it is okay for the same investor to buy one company and leverage that company using margin and be lucky if he gets a 10% yearly return over a 10 year period. I will argue that the second choice may seem like a foolish and unwise investment, but we allow it because people have the right to make that choice. With this ruling FINRA is essentially stating that they trust an investor more when an he or she buys one stock using margin than compared to the man or woman who buys 100 companies using leverage (TQQQ or QLD). I hope you make the right decision in allowing investors the freedom to choose how they build their wealth.