Steven Rosenfeld Comment On Regulatory Notice 22-08
Steven Rosenfeld
N/A
In the past 20 or so years, we have had three major market corrections of approximately 37%, 40% and 50%. In all of those cases, it would take close to 10 years to recover the losses, based on normal rates of returns (for example, a 50% drop requires 100% returns to become whole). If you started retirement savings at a time later than ideal, for any number of reasons, you need the ability to try to retire at acceptable levels, and leveraged funds can allow this to take place. Leveraged funds greatly reduced, in my own case, the time for catch-up trades in those circumstances, and allowed the recovery of the major losses of big corrections.
I need the freedom to make my own investment choices. In addition, I am required to attest to my brokerage that I am aware of the risks, The leveraged funds allow me to diversify my portfolio by spreading risk with lower cash positions. I can get a wider array of diverse, leveraged funds to take positions as protection for losses.
Finally, there is inherent risk in markets. If you study the volatility of an asset class such as bitcoin vs. leveraged funds, you will find that many of the funds are far less volatile, yet bitcoin is see as a valid and allowable investment. The same can hold true for other "legal" investment vehicles of options or margin trading, yet those are allowable investment instruments.
It is to this investor an ill-advised decision to impinge on investor freedom, disallow catch-up trades for large market corrections, reduce the option of smaller cash outlays by using leveraged funds for diversification, and to unfairly allow other investment vehicles with greater risk potential to exist while disallowing leveraged funds.
For the Public
FINRA DATA
FINRA Data provides non-commercial use of data, specifically the ability to save data views and create and manage a Bond Watchlist.
For Industry Professionals
FINPRO
Registered representatives can fulfill Continuing Education requirements, view their industry CRD record and perform other compliance tasks.
For Member Firms
FINRA GATEWAY
Firm compliance professionals can access filings and requests, run reports and submit support tickets.
For Case Participants
DR PORTAL
Arbitration and mediation case participants and FINRA neutrals can view case information and submit documents through this Dispute Resolution Portal.
Need Help? | Check System Status
Log In to other FINRA systems
Steven Rosenfeld Comment On Regulatory Notice 22-08
In the past 20 or so years, we have had three major market corrections of approximately 37%, 40% and 50%. In all of those cases, it would take close to 10 years to recover the losses, based on normal rates of returns (for example, a 50% drop requires 100% returns to become whole). If you started retirement savings at a time later than ideal, for any number of reasons, you need the ability to try to retire at acceptable levels, and leveraged funds can allow this to take place. Leveraged funds greatly reduced, in my own case, the time for catch-up trades in those circumstances, and allowed the recovery of the major losses of big corrections.
I need the freedom to make my own investment choices. In addition, I am required to attest to my brokerage that I am aware of the risks, The leveraged funds allow me to diversify my portfolio by spreading risk with lower cash positions. I can get a wider array of diverse, leveraged funds to take positions as protection for losses.
Finally, there is inherent risk in markets. If you study the volatility of an asset class such as bitcoin vs. leveraged funds, you will find that many of the funds are far less volatile, yet bitcoin is see as a valid and allowable investment. The same can hold true for other "legal" investment vehicles of options or margin trading, yet those are allowable investment instruments.
It is to this investor an ill-advised decision to impinge on investor freedom, disallow catch-up trades for large market corrections, reduce the option of smaller cash outlays by using leveraged funds for diversification, and to unfairly allow other investment vehicles with greater risk potential to exist while disallowing leveraged funds.