There are plenty of warnings regarding the use of leverage with stock market investing. As a manager and individual investor, the disclosure and disclaimer hoops are already plentiful. This issue is less significant than the investor confusion created by dual licensing of brokers as RIA reps and Series 7 agents. The BIC rules didn't reduce the confusion.
I have been investing in leveraged and inverse funds for years without any adverse effects. They are critical to my investing, in both up and down trending markets.
I see no reason to regulate what a person decides to do with their money. The government doesn't appear to have any restrictions on it's ability to manipulate the market on a daily basis as it does. The craps table isn't restricted or any other game in the betting business. Margin is allowed, shorting is allowed, and I'm sure there are other things big money is allowed to do.
It seems to me that we should spend more time educating our country how to invest in general. The majority of the US doesnt understand investing and doesnt save enough for retirement. I would urge the SEC to focus their focus educating and guiding them than creating more hoops for those of us that do we understand how interesting works. Please..
The leveraged and reverse ETF's provide the investor public options to make investment choices with their relevant levels of risks.
As a FINRA member and long time investor in inverse and leveraged ETFs, I am totally against your proposed regulations in relation thereto. Yes, these are potentially lethal products and I've had my share of losses trading them, but they are still a valuable option to have in one's investment quiver...especially in uncertain times...like now. FINRA trying to regulate investors'
I think it's extremely important that professional advisors have the ability to work with or against the general market directions from the standpoint of hedging client portfolios, and these funds are the easiest and most efficient ways to implement these hedges. For example if the markets are down 15% this year and a hedge with this type of fund means only -8% loss for clients then they are
I totally disagree with the proposal to regulate leveraged and inverse ETF's. They should be available to everyone, not just high net worth individuals. I understand the risks and use them strategically as a small fraction of my overall portfolio. I do not need anyone telling me what to do, or having to prove myself capable. I also totally disagree with the current regulations that restrict
It is unacceptable and unfair to remove access to leveraged and inverse ETF's from individual investors. Especially, if high net worth individuals continue to have access to these funds. The rules should be the same for everyone. It is not the job of regulators to "protect" us from ourselves.
Retail investors should have access to inverse ETFs for hedging purposes. For complex products, ETF sponsors/managers should provide easy to understand demos & other materials to retails investors for education purposes. Thank you!
