Leveraged/Inverse Products ... like other investment products, leveraged and inverse funds or ETFs have a useful purpose for those who have some understanding of the terms "leveraged" and "inverse"...
All a person has to do to understand what "leveraged" or "inverse" means is some MINIMAL research on their broker's website or the AAII website or any of dozens of other investment/financial websites readily available.
I have used both leveraged and ESPECIALLY inverse funds/ETFs when the market action seemed ripe for a "reversal", whether the situation was a short, medium or long-term.
Since "short selling" is only considered to be short-term gain taxed at regular tax rates, an "inverse" fund held for 1 year and a day can be useful to achieve long-term gain status for a "long-term" position in a lengthy BEAR market... which coincidentally is what we may be entering in 2022.
If FINRA wants to do something really useful, why don't you help the SEC and FBI do something about the "insider trading" by all the scam artists posing as U.S. Senators and Representatives in Congress!!!
Richard Riffe Comment On Regulatory Notice 22-08
Leveraged/Inverse Products ... like other investment products, leveraged and inverse funds or ETFs have a useful purpose for those who have some understanding of the terms "leveraged" and "inverse"...
All a person has to do to understand what "leveraged" or "inverse" means is some MINIMAL research on their broker's website or the AAII website or any of dozens of other investment/financial websites readily available.
I have used both leveraged and ESPECIALLY inverse funds/ETFs when the market action seemed ripe for a "reversal", whether the situation was a short, medium or long-term.
Since "short selling" is only considered to be short-term gain taxed at regular tax rates, an "inverse" fund held for 1 year and a day can be useful to achieve long-term gain status for a "long-term" position in a lengthy BEAR market... which coincidentally is what we may be entering in 2022.
If FINRA wants to do something really useful, why don't you help the SEC and FBI do something about the "insider trading" by all the scam artists posing as U.S. Senators and Representatives in Congress!!!