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William Nestor Comment On Regulatory Notice 22-08

William Nestor
N/A

I strongly oppose these proposed regulations! This country was founded on the premise that the average citizen has enough common sense to take care of himself and decide what is appropriate as far as his personal finances are concerned. This is just another example of governmental overreach and the end result will be that only the very wealthy will have access to these investments. In my opinion that's very likely the "real" reason behind this proposed legislation if the truth were known.

These investments can be misused but so can a lot of other things like alcohol, automobiles, etc. (with far graver potential consequences). It is up to the investor to know the risks and possible outcomes before purchasing these types of securities. I've used both leveraged and inverse funds over the years some have worked out and others not but that's the nature of investing. The key is to not invest the "rent" money but that's true with regular stocks as well. In the end, if the investment doesn't work out, you only lose what money you've invested to begin with. The same can't be said for shorting stocks or writing naked options which is allowed with the approval of the brokerage firm. I didn't have to pass any test to get approval to do that so why should I have to in order to trade leveraged or inverse funds which carry far less risk? It just doesn't make much sense.