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Ofer Storch Comment On Regulatory Notice 22-08

Ofer Storch
N/A

Traded securities including leveraged and inverse funds should be open to everyone and not just the rich or the privileged. Their risk is not greater than picking a security that may go down to zero (Kodak, Sears etc.). As a matter of fact, they are safer than single stocks, penny stocks, highly leveraged companies etc. because they represent an investment in an index of multiple companies. Going this way is a absolutely a terrible idea because where does it stop? Are we going to ask brokers to interview their clients before each trade? Leveraged funds are an excellent way to enhance returns or protect a portfolio over time. They do not require special skills to understand the risks they may pose and I actually argue that the risk in investment in them is less than in single securities. I really hope that regulators will keep our markets as free as possible.