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Patrick Eastman Comment On Regulatory Notice 22-08

Patrick Eastman
N/A

Restricting use of leveraged and inverse ETF's is a step in the wrong direction. Individual investors need tools to help manage risk as much as industry insiders and the wealthy. I use them as a tool to hedge my portfolio. As the market retreated, I put a small percentage, about 2% - 3%, into some of these instruments to decrease my downside. The leveraged ETF's allow me to use a smaller amount of capital to get a bigger impact. Since I'm mostly fully invested, and it's difficult to time the market to determine what to sell to raise capital. These investment are not difficult to understand. The risks and rewards are actually very easy to understand. Also, much our money is in 401K's and we do not have access to these instruments in those accounts.