I am an individual investor, responsible for investing for my own family and retirement. I'm investing in PUBLIC investment vehicles, that currently are (and should REMAIN) available to any investor, and not just privileged hedge fund managers.
I DO NOT consent to having to take or pass any special exam in order to invest a security, which by definition is an act of risking capital in the hopes of a return. Loss, even total loss, is an inherent risk, as is an infinite return. Neither are likely, but they're possible.
The markets are a Caveat Emptor arrangement between the market and the investor. If the investor does not research and understand an investment, then WHY would they risk their hard earned capital on it? Conversely, if you have an experienced individual investor, like myself, who is able to earn returns in leveraged (long and short) ETF's, they what business do you have tell me that I can no longer participate in the American Dream? Are you reserving that for only the privileged few who are already (by all general public measures) wealthy beyond any need to worry about finances for the rest of their lives (and children's lives)?
Am I a 2nd Class citizen because I don't run a hedge fund, or own 100M+ yacht? (By the way, if you've been paying attention to the financial news lately, it's littered with massive negative hedge fund returns for Q1 '22).
I understand the risks of leveraged ETF's, and in fact, I SPECIFICALLY invest in them on occasion as I'm a trend and momentum trader, and I look for shorter term opportunities. I don't need nor want a special education imposed by FINRA to get between me and my investing goals.
I have been using leveraged ETF's most recently to HEDGE my long positions, and they have performed beautifully. What am I supposed to do if I cannot hedge my positions? Sell at a loss to make some regulator happy? Is that regulator going to fund my retirement? I think not..
Finally, if you proceed with this, and you restrict my (and everyone's) ability these investment tools, these funds will become ill-liquid. They in effect will be useless. Obviously this is going to CAUSE losses for investors like me who are holding these ETF's. Perhaps a class action lawsuit should be filed targeting FINRA and the regulators who fleeced Billions in value from individual investors (for their "own good") because FINRA decided they were too stupid to invest. You want to label me as stupid, fine, but don't you touch my money, or I will publicly shout it from the rooftops and make it my mission in life to legally pursue those responsible on behalf of myself and every other 'little guy' who gets shafted by this. I believe these proposals by FINRA will be judged, in retrospect, as class-action fodder in the making.
I implore you not to do this, and keep the investing playing field as level as it can be.
Thank you for your time.
Michael Logar Comment On Regulatory Notice 22-08
I am an individual investor, responsible for investing for my own family and retirement. I'm investing in PUBLIC investment vehicles, that currently are (and should REMAIN) available to any investor, and not just privileged hedge fund managers.
I DO NOT consent to having to take or pass any special exam in order to invest a security, which by definition is an act of risking capital in the hopes of a return. Loss, even total loss, is an inherent risk, as is an infinite return. Neither are likely, but they're possible.
The markets are a Caveat Emptor arrangement between the market and the investor. If the investor does not research and understand an investment, then WHY would they risk their hard earned capital on it? Conversely, if you have an experienced individual investor, like myself, who is able to earn returns in leveraged (long and short) ETF's, they what business do you have tell me that I can no longer participate in the American Dream? Are you reserving that for only the privileged few who are already (by all general public measures) wealthy beyond any need to worry about finances for the rest of their lives (and children's lives)?
Am I a 2nd Class citizen because I don't run a hedge fund, or own 100M+ yacht? (By the way, if you've been paying attention to the financial news lately, it's littered with massive negative hedge fund returns for Q1 '22).
I understand the risks of leveraged ETF's, and in fact, I SPECIFICALLY invest in them on occasion as I'm a trend and momentum trader, and I look for shorter term opportunities. I don't need nor want a special education imposed by FINRA to get between me and my investing goals.
I have been using leveraged ETF's most recently to HEDGE my long positions, and they have performed beautifully. What am I supposed to do if I cannot hedge my positions? Sell at a loss to make some regulator happy? Is that regulator going to fund my retirement? I think not..
Finally, if you proceed with this, and you restrict my (and everyone's) ability these investment tools, these funds will become ill-liquid. They in effect will be useless. Obviously this is going to CAUSE losses for investors like me who are holding these ETF's. Perhaps a class action lawsuit should be filed targeting FINRA and the regulators who fleeced Billions in value from individual investors (for their "own good") because FINRA decided they were too stupid to invest. You want to label me as stupid, fine, but don't you touch my money, or I will publicly shout it from the rooftops and make it my mission in life to legally pursue those responsible on behalf of myself and every other 'little guy' who gets shafted by this. I believe these proposals by FINRA will be judged, in retrospect, as class-action fodder in the making.
I implore you not to do this, and keep the investing playing field as level as it can be.
Thank you for your time.