A diversified portfolio tends to be harder to achieve than simply following the mantra to avoid putting all of your investment eggs in one basket. This basic strategy can help, but it is often not enough to avoid concentration risk—the risk of amplified losses that may occur from having a large portion of your holdings in a particular investment, asset class or market segment relative to your overall portfolio. Learn more about concentration risk and read tips on how to manage it.
I feel that investors are fully aware of their decisions and regulators should not question wisdom and/or knowledge of risk involved taken. Markets do have risks and should not be viewed as a casino. Real investors do know of risks involved.
As a small independent retail investor I find leveraged and inverse funds a valuable tool in hedging my investments. They enable me to ride out ups and downs of the market without having to sell, short, and/or rebuy securities in turbulent times. Such funds are an invaluable asset, and access to them should not be denied, or limited to high net worth, professionals.
I find the very premise that in the largest capital market system in the world, there are regulators that are attempting to not allow inverse or leveraged ETFs. To say this is disingenuous would be taking it easy. Lazy is another word. Brokers, and financial advisors exist for reason as does compliance departments. The reality is the average investor is not going to know how to short or buy
I agree that investor education is critical and that both high level and detailed materials should be made more available that explain these products in terms that the average investor can understand. I oppose putting hurtles in the way of investors who want to use these products. Net worth limitations would be especially egregious.
Please stop regulating everything and everyone. Thank you.
More rules for regular investors while big fish gets away with all the advantages that you can not do anything about. You will let them sell order flows, let dark pools exist, but put restrictions on common public.
This spring I have been buying Puts on the TLT which is a triple leveraged product on the 20 year treasuries. I have also been buying out right the TBT which is the triple leveraged inverse of the 20 year treasuries. After watching my balances rise I started tracking the increase in my stock portfolio. On 4/9/2022 my balance was $57,497.57 on 4/15/2022 it was $59,457.61 on 4/22/2022 it was $59
I OPPOSE RESTRICTIONS TO MY RIGHT TO INVEST
Comments: I read the FINRA document and as a 30-year veteran of the financial services industry and held numerous FINRA registrations and licenses throughout my career I find this document to be a gross overreach of government regulation and intrusion into my personal financial decisions.
FINRA needs to be focused on educating investors, requiring adequate & appropriate risk