It is common knowledge that markets are manipulated by large funds and privileged wealthy investors. Leveraged and inverse funds are the small investors way to level the playing field. People should have the right to make their own financial decisions. Information regarding risks is adequate to inform an investor who should take responsibility for their own actions. Passing a knowledge test does not insure that people will not lose money if they make bad decisions. I have used inverse funds to protect my portfolio rather than sell out when I see a down trend. It is an important part of my strategy becasue I can profit from some short term adverse market conditions. Inverse funds also offer protection in the case of a market crash which many pundits are now forecasting. The proposed requirements to trade these funds are actually a form of market maipulation against choices for the small investor. significantly impacting their portfolio management tools. Freedom of choice not imposed management is what is needed.
Marsha Adams Comment On Regulatory Notice 22-08
It is common knowledge that markets are manipulated by large funds and privileged wealthy investors. Leveraged and inverse funds are the small investors way to level the playing field. People should have the right to make their own financial decisions. Information regarding risks is adequate to inform an investor who should take responsibility for their own actions. Passing a knowledge test does not insure that people will not lose money if they make bad decisions. I have used inverse funds to protect my portfolio rather than sell out when I see a down trend. It is an important part of my strategy becasue I can profit from some short term adverse market conditions. Inverse funds also offer protection in the case of a market crash which many pundits are now forecasting. The proposed requirements to trade these funds are actually a form of market maipulation against choices for the small investor. significantly impacting their portfolio management tools. Freedom of choice not imposed management is what is needed.