In my opinion, investors should have the right to decide which public equities, bonds, ETF's and mutual funds they want to buy. The FINRA plan puts this right on the government and regulators, not us. This eliminates our right to decide what is best for me.
Although it is too early to tell, we might be experiencing a major shift in the markets. Let me explain. For the last 40 years or so the combination of low inflation, low interest rates, and relatively low wage increases have given the financial markets a strong boost. The markets thrived on the low interest rates and the accommodating Federal Reserve to supply liquidity to the markets.
Today we are feeling the resurgence of high inflation, which results in higher interest rates and higher wage increases. Higher interest rates could impact both the stock market and the economy. We know it does impact the bond prices.
Now is the time investors need this extra protection. It is just possible investing in the S&P 500 at this time might be more dangerous than in an inverse fund. Microsoft recently sold for 12 times sales. To buy Microsoft would mean an investor takes on a huge risk for the next 12 years, at least. I understand Microsoft is an excellent company, but not at 12 times sales.
I would suggest that the majority of those invested in inverse funds either have substantial knowledge, substantial experience, or their accounts are being managed by those who are. I don't think the average investor is aware of inverse funds.
Therefore, please do not take away the rights of those who utilize such vehicles.
Ron Mauch Comment On Regulatory Notice 22-08
In my opinion, investors should have the right to decide which public equities, bonds, ETF's and mutual funds they want to buy. The FINRA plan puts this right on the government and regulators, not us. This eliminates our right to decide what is best for me.
Although it is too early to tell, we might be experiencing a major shift in the markets. Let me explain. For the last 40 years or so the combination of low inflation, low interest rates, and relatively low wage increases have given the financial markets a strong boost. The markets thrived on the low interest rates and the accommodating Federal Reserve to supply liquidity to the markets.
Today we are feeling the resurgence of high inflation, which results in higher interest rates and higher wage increases. Higher interest rates could impact both the stock market and the economy. We know it does impact the bond prices.
Now is the time investors need this extra protection. It is just possible investing in the S&P 500 at this time might be more dangerous than in an inverse fund. Microsoft recently sold for 12 times sales. To buy Microsoft would mean an investor takes on a huge risk for the next 12 years, at least. I understand Microsoft is an excellent company, but not at 12 times sales.
I would suggest that the majority of those invested in inverse funds either have substantial knowledge, substantial experience, or their accounts are being managed by those who are. I don't think the average investor is aware of inverse funds.
Therefore, please do not take away the rights of those who utilize such vehicles.