I have a modest net worth and am not an investment professional, but have spent 15 years investing in individual stocks, ETFs, and mutual funds. As I have gained experience, my investment thesis has become quite simple: You either believe stocks will go up in the long run, or you believe they will go down in the long run. If you believe the former, then the logical next step is to get as much leverage as possible into a long position on the S&P500 or similar index. (If you believe the latter, you'd best invest in guns, gold, and bullets.) The easiest way for me, as a not-that-sophisticated retail investor, to get a leveraged long position on an index is to invest in a leveraged ETF. If I am restricted from these products, I would be forced to enter into other positions that are both riskier and I am less-informed about in order to get my desired leverage (i.e. options and other derivatives).
I believe a free market should let its participants pursue their individual investment theses, and restricting my access to safe, easy-to-understand products will prevent me from doing so.
Richard Walker Comment On Regulatory Notice 22-08
I have a modest net worth and am not an investment professional, but have spent 15 years investing in individual stocks, ETFs, and mutual funds. As I have gained experience, my investment thesis has become quite simple: You either believe stocks will go up in the long run, or you believe they will go down in the long run. If you believe the former, then the logical next step is to get as much leverage as possible into a long position on the S&P500 or similar index. (If you believe the latter, you'd best invest in guns, gold, and bullets.) The easiest way for me, as a not-that-sophisticated retail investor, to get a leveraged long position on an index is to invest in a leveraged ETF. If I am restricted from these products, I would be forced to enter into other positions that are both riskier and I am less-informed about in order to get my desired leverage (i.e. options and other derivatives).
I believe a free market should let its participants pursue their individual investment theses, and restricting my access to safe, easy-to-understand products will prevent me from doing so.