Marios Philippou Comment On Regulatory Notice 22-08
Marios Philippou
N/A
I oppose restrictions to my right to invest in TQQQ, SQQQ and other leveraged products. I have been investing in these products for years and they are no more risky that any other stocks in the market. Anybody trading in the market has to understand that there is risk involved and chooses to take that risk...regulators should not try to babysit investors by trying to tell them which stock or fund they should or should not invest in. Restricting the free trading of specific stocks or funds will reduce liquidity in that stock or fund and will damage long term investors who have chosen to purchase these funds with a long term outlook in mind. Leveraged funds like TQQQ for example are an ideal long term investment for investors like myself when markets are down. If I purchase 100 shares of TQQQ when the general market is down then the upside of that investment, if I am prepared to hold it long term, is much better than purchasing the QQQ for example or some of the individual stocks that make up the Nasdaq. For example when TQQQ is at $38 and QQQ is at $318. My risk purchasing 100 shares of TQQQ is $3800 while my risk of purchasing 100 shares of QQQ is $31,800. If I am prepared to hold long term and the Nasdaq rises I will do well but with TQQQ my risk is not as high as with the QQQ. I understand that if the Nasdaq falls the loss per share can be more but if you are a long term investor and believe, as I do, that in the long term shares will rise then to risk $3800 is not an issue, however if I risk $31,800 purchasing QQQ then it is a bigger concern. Buying individual Nasdaq stocks in my opinion is not as safe as purchasing a fund like QQQ or TQQQ because individual stocks can fail and even be removed from the Nasdaq 100 list and replaced with another stock and even though this will affect the TQQQ and QQQ short term it will still be fine in the long term.
As far as I am concerned EVERYBODY who would like to trade in the stock market should be able to do so and one should not have to go through any special process like passing a test to be able to invest in public securities. Anybody who decides to enter the market understands that you are taking a risk and we are all capable of making our own decisions on investments we make. A real estate investor for example does not have to pass a special test to allow him to purchase or even speculate on a real estate investment. A person investing in the market should not have any restrictions either. Leveraged funds are important to my investment strategies and would hurt me and other long and short term investors and traders in these funds. Please do not decide for me which equity or fund is risky and which is not.. that should be up to me, not up to the regulators
Right now my stock portfolio includes a good number of TQQQ shares and I plan to purchase more if the price rises in the next few weeks. I believe in the long term the overall market will appreciate and these shares will appreciate too. It is critical that these shares continue to be liquid, as liquid as QQQ and as liquid as the Nasdaq futures for them to appreciate as the Nasdaq appreciates. If you restrict the buying and selling of TQQQ for example then the market for these funds will dry up and many people, like myself who hold these for long term growth, will be hurt by these regulations. Investors are smart enough to make their own decisions on where to invest their money, it is not necessary for regulators to interfere to try and protect them from the risks they already understand. I urge you to NOT put these restrictions in place .. in my opinion they are simply not necessary and will hurt in the long run.
Marios Philippou Comment On Regulatory Notice 22-08
I oppose restrictions to my right to invest in TQQQ, SQQQ and other leveraged products. I have been investing in these products for years and they are no more risky that any other stocks in the market. Anybody trading in the market has to understand that there is risk involved and chooses to take that risk...regulators should not try to babysit investors by trying to tell them which stock or fund they should or should not invest in. Restricting the free trading of specific stocks or funds will reduce liquidity in that stock or fund and will damage long term investors who have chosen to purchase these funds with a long term outlook in mind. Leveraged funds like TQQQ for example are an ideal long term investment for investors like myself when markets are down. If I purchase 100 shares of TQQQ when the general market is down then the upside of that investment, if I am prepared to hold it long term, is much better than purchasing the QQQ for example or some of the individual stocks that make up the Nasdaq. For example when TQQQ is at $38 and QQQ is at $318. My risk purchasing 100 shares of TQQQ is $3800 while my risk of purchasing 100 shares of QQQ is $31,800. If I am prepared to hold long term and the Nasdaq rises I will do well but with TQQQ my risk is not as high as with the QQQ. I understand that if the Nasdaq falls the loss per share can be more but if you are a long term investor and believe, as I do, that in the long term shares will rise then to risk $3800 is not an issue, however if I risk $31,800 purchasing QQQ then it is a bigger concern. Buying individual Nasdaq stocks in my opinion is not as safe as purchasing a fund like QQQ or TQQQ because individual stocks can fail and even be removed from the Nasdaq 100 list and replaced with another stock and even though this will affect the TQQQ and QQQ short term it will still be fine in the long term.
As far as I am concerned EVERYBODY who would like to trade in the stock market should be able to do so and one should not have to go through any special process like passing a test to be able to invest in public securities. Anybody who decides to enter the market understands that you are taking a risk and we are all capable of making our own decisions on investments we make. A real estate investor for example does not have to pass a special test to allow him to purchase or even speculate on a real estate investment. A person investing in the market should not have any restrictions either. Leveraged funds are important to my investment strategies and would hurt me and other long and short term investors and traders in these funds. Please do not decide for me which equity or fund is risky and which is not.. that should be up to me, not up to the regulators
Right now my stock portfolio includes a good number of TQQQ shares and I plan to purchase more if the price rises in the next few weeks. I believe in the long term the overall market will appreciate and these shares will appreciate too. It is critical that these shares continue to be liquid, as liquid as QQQ and as liquid as the Nasdaq futures for them to appreciate as the Nasdaq appreciates. If you restrict the buying and selling of TQQQ for example then the market for these funds will dry up and many people, like myself who hold these for long term growth, will be hurt by these regulations. Investors are smart enough to make their own decisions on where to invest their money, it is not necessary for regulators to interfere to try and protect them from the risks they already understand. I urge you to NOT put these restrictions in place .. in my opinion they are simply not necessary and will hurt in the long run.