Smokey Ardisson Comment On Regulatory Notice 22-08
Smokey Ardisson
N/A
I am deeply disturbed by the proposed regulation limiting access to leveraged and inverse ETFs (which are publicly-traded securities) to those with high net worth who pass a specialized regulatory exam and then jump through a series of administrative and timing-related hoops.
Leveraged and inverse ETFs are one of the few methods that the little guy has in order to protect his or her investments from the overwhelming capital and information resources of the Wall Street whales. Particularly in times of market downturns (of which we have seen many lately, both shallow and deep), inverse funds are the only option available to many small investors to hedge their investment portfolios (since most retail investors cannot short stocks, particularly in their IRAs, and shorting stocks is inherently more risky than purchasing an Inverse ETF).
Judicious and carefully-timed use of inverse and leveraged ETFs has allowed me to maintain my portfolio values during times when the stock market is falling rapidly (using inverse ETFs) as well as build it back when the market is kicking off a new rally or making a strong upside move (using leveraged ETFs).
Inverse and leveraged ETFs are not complicated financial instruments; they are more transparent and simpler to understand than mutual funds, and they are highly-liquid, widely-traded public securities. A bunch of bureaucrats who do not know me, my goals, and my portfolio protection needs have no business telling me what kinds of securities are suitable for me to buy and sell and imposing artificial limitations to prevent me from accessing critically necessary resources (inverse and leveraged funds) to protect my investments.
I urge you to abandon this ill-considered rule which will do nothing but allow the little guy to be crushed by the Wall Street behemoths who have nearly-unlimited trading options.
Smokey Ardisson Comment On Regulatory Notice 22-08
I am deeply disturbed by the proposed regulation limiting access to leveraged and inverse ETFs (which are publicly-traded securities) to those with high net worth who pass a specialized regulatory exam and then jump through a series of administrative and timing-related hoops.
Leveraged and inverse ETFs are one of the few methods that the little guy has in order to protect his or her investments from the overwhelming capital and information resources of the Wall Street whales. Particularly in times of market downturns (of which we have seen many lately, both shallow and deep), inverse funds are the only option available to many small investors to hedge their investment portfolios (since most retail investors cannot short stocks, particularly in their IRAs, and shorting stocks is inherently more risky than purchasing an Inverse ETF).
Judicious and carefully-timed use of inverse and leveraged ETFs has allowed me to maintain my portfolio values during times when the stock market is falling rapidly (using inverse ETFs) as well as build it back when the market is kicking off a new rally or making a strong upside move (using leveraged ETFs).
Inverse and leveraged ETFs are not complicated financial instruments; they are more transparent and simpler to understand than mutual funds, and they are highly-liquid, widely-traded public securities. A bunch of bureaucrats who do not know me, my goals, and my portfolio protection needs have no business telling me what kinds of securities are suitable for me to buy and sell and imposing artificial limitations to prevent me from accessing critically necessary resources (inverse and leveraged funds) to protect my investments.
I urge you to abandon this ill-considered rule which will do nothing but allow the little guy to be crushed by the Wall Street behemoths who have nearly-unlimited trading options.