Inverse funds serve an essential purpose as a hedge against severe market downturns. During the 2008-2009 crisis I lamented the fact that absolutely NOTHING in my investment portfolio increased in value. I urgently sought funds from other sources so as to be able to scoop up bargain stocks in which to invest at rock-bottom prices. After this debacle, I decided that it would be prudent to invest a small portion of my portfolio in an inverse fund to serve as a sort of portfolio insurance. Ordinary investors should be able to make such investments without extensive vetting by third parties.
William Porter Comment On Regulatory Notice 22-08
Inverse funds serve an essential purpose as a hedge against severe market downturns. During the 2008-2009 crisis I lamented the fact that absolutely NOTHING in my investment portfolio increased in value. I urgently sought funds from other sources so as to be able to scoop up bargain stocks in which to invest at rock-bottom prices. After this debacle, I decided that it would be prudent to invest a small portion of my portfolio in an inverse fund to serve as a sort of portfolio insurance. Ordinary investors should be able to make such investments without extensive vetting by third parties.