I have been using inverse and leverage funds for years as a way to MITIGATE risk in my portfolio. They have proven time and again to be great vehicles for preserving wealth and capital in times of uncertainty. During the COVID crash, Inverse funds allowed me to hedge my portfolio quickly and easily and preserve most of my capital while the "buy and hold" crowd lost 30% of their portfolio in a matter of weeks.
Today, in 2022 I have a hedging plan in place that once again will use the leveraged and inverse capabilities to protect my portfolio in the event of another steep sell-off.
I feel that limiting access to these types of investment vehicles will put smaller individual investors such as myself at higher risk of capital loss and therefore they should not be made more difficult or impossible to invest in.
The advantages and risks of leveraged funds are simple to understand and in my opinion no further regulation is needed.
Scott Metcalf Comment On Regulatory Notice 22-08
Greetings,
I have been using inverse and leverage funds for years as a way to MITIGATE risk in my portfolio. They have proven time and again to be great vehicles for preserving wealth and capital in times of uncertainty. During the COVID crash, Inverse funds allowed me to hedge my portfolio quickly and easily and preserve most of my capital while the "buy and hold" crowd lost 30% of their portfolio in a matter of weeks.
Today, in 2022 I have a hedging plan in place that once again will use the leveraged and inverse capabilities to protect my portfolio in the event of another steep sell-off.
I feel that limiting access to these types of investment vehicles will put smaller individual investors such as myself at higher risk of capital loss and therefore they should not be made more difficult or impossible to invest in.
The advantages and risks of leveraged funds are simple to understand and in my opinion no further regulation is needed.