Don't take away my ability to trade in leveraged long/short products. To have regulators restrict my choice in investment products is absolutely wrong and would ultimately degrade my ability to manage my investments. Inverse funds are critically important in providing PROTECTION. It permits me to offset my long positions when markets decline. By using the inverse leveraged funds I can avoid selling my long holdings and incurring capital gains taxes. By having the leverage component, I am able to REDUCE risk by taking my overall portfolio to neutral and not have a large capital gains tax due to the IRS. Without leverage I would not be able to do this. Why would regulators want to restrict me from reducing risk and PROTECTING my wealth? On the opposite side if I choose to assume additional risk by adding leveraged long funds then let me make that decision not the regulators. Don't punish me and so many others like me by imposing a nanny state upon us.
Paul Macnamara Comment On Regulatory Notice 22-08
Don't take away my ability to trade in leveraged long/short products. To have regulators restrict my choice in investment products is absolutely wrong and would ultimately degrade my ability to manage my investments. Inverse funds are critically important in providing PROTECTION. It permits me to offset my long positions when markets decline. By using the inverse leveraged funds I can avoid selling my long holdings and incurring capital gains taxes. By having the leverage component, I am able to REDUCE risk by taking my overall portfolio to neutral and not have a large capital gains tax due to the IRS. Without leverage I would not be able to do this. Why would regulators want to restrict me from reducing risk and PROTECTING my wealth? On the opposite side if I choose to assume additional risk by adding leveraged long funds then let me make that decision not the regulators. Don't punish me and so many others like me by imposing a nanny state upon us.