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Sheldon Pacotti Comment On Regulatory Notice 22-08

Sheldon Pacotti
N/A

To Whom It May Concern:

I oppose adding undo burden on individual investors in relation to inverse and leveraged funds. Current disclosures are quite specific about the risks and intended timeframe of such investments -- almost forbiddingly so. As an individual investor, I have diverged from such guidance, but I feel sufficiently warned.

Individual investors will always make bad decisions. More pernicious, in my mind, are the wild narratives spun up online about "meme" stocks like GameStop. These are straightforward investments being bought and sold based on mythmaking. By comparison, inverse and leveraged funds tell a clear story, founded on index investing, which appeals to reason rather than emotion.

Therefore, any regulation should focus on ensuring transparency and education, not on preemptively protecting individuals from the poor decisions they may make during their pursuit of happiness. Close off index-based ETFs and you'll just have more people buying Bored Apes Yacht Club imaginary land parcels.