Skip to main content

Michael Becker Comment On Regulatory Notice 22-08

MICHAEL BECKER
N/A

The current downturn in the stock market has hurt many investors. When bond yields were at historic lows in the past year, I continued purchases of 2x inverse 20 and 10 year treasury bond etf's, until they became 20% of my portfolio. This was my hedge against inflationary pressures, because higher p/e ratios cannot be maintained when bond yields rise. My 2X inverse bond holdings have now increased over 63%, while stocks have gone down over 25% this year, and the inverse bonds now comprise over 33% of my portfolio, keeping my losses negligible. If regulators take this tool away, my retirement outlook at my age of 75 would be greatly diminished. I believe that I have a right to purchase these financial instruments as a hedge against downturns in the market. I plan to sell these inverse bonds when the Fed says it is done with "tightening". No stock holding has such a defined "high limit" that is announced by highest level financial regulatory officials as a time to sell such holdings. Please do not take away my right to purchase these financial instruments. I plan to purchase +2X ten and twenty year treasury bond etf's when the fed is done tightening, and it looks like treasury bond yields have reached a new probable high yield point. As far as I am concerned, it is a safer investment than any stock I have ever purchased. What stock tells you that a certain time is a good time to sell?