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Liang Lin Comment On Regulatory Notice 22-08

Liang Lin
N/A

In the United States, each individual should and have the right to be responsible for ones own decisions regarding his/her own life matters, including ones assets and possessions. Everyone ought to be able to invest in all public securities, since they are to the public. Diversify ones portfolio is a balanced way to invest. Leveraged and inverse funds are part of the vehicles to diversity, which, if done correctly, could improve the long time performance of ones portfolio as long as one understand and control the risks from these funds. Investing in public security market or any submarket carries risks. Leveraged and inverse funds should not be singled out.

Leveraged and inverse funds have been available in the market for quite a long time. Many people have assets invested in those funds. Imposing restrictions to investing in these funds will change the dynamics around. If less people will be able to invest in those funds, the funds performance will suffer (i.e., more supplies over less demands). This will definitely induce negative effect to the future performances of these funds, which will put people already invested in the funds in very disadvantaged situation, impact the investors plans and strategies, and cause them to lose money unexpectedly (which is not because of their own decisions to invest in them). This, I believe, is what this proposed regulation tries to prevent in essence. Oftentimes, policies/regulations are set for a good hope but unfortunately work against the original purpose and produce totally opposite results.

Please and please, do not do this. Thank you!