Leveraged funds are a great tool for building wealth, especially for those of us without large amounts of capital to begin with.
There is plenty of peer reviewed academic research that using leverage when you're young offers increased risk adjusted returns.
There is also a MAJOR logistical issue in implementing this ban that would RUIN many people financially. Leveraged ETFs are volatile
FINRA has taken disciplinary actions against the following firms and individuals for violations of FINRA rules; federal securities laws, rules and regulations; and the rules of the Municipal Securities Rulemaking Board (MSRB).
Free trade is free trade. I use inverse leveraged funds to help hedge my portfolio. In these volatile markets these are necessary tools to mitigate your personal risk. I shouldn't have to go through any special process like passing a test before you can invest in public securities, like leverage and inverse funds. I completely understand leverage and inverse funds and their risks. Public
I oppose restrictions to my right to invest. I already have passed tests to prove my competency. I want the same rights as members of congress. Bureaucrats mandating restrictions has been a proven failure.
I alone know what risk exposure is acceptable for me, not FINRA regulators. I have spent two years fine tuning a strategy that lets me vary my risk exposure using a mix of standard and leveraged funds to take advantage of market behavior. Blocking access to these leveraged funds will wreak havoc on myself and others in my position who have spent the time and energy to create smart and intelligent
I do not believe regulators should be able to choose which investments may be proper for me to invest in. Leveraged investments allow me to achieve the level of returns that I want with only having to risk 1/2 to 1/3 of the amount of money that I normally would. Inverse funds help me hedge against losing gains in other funds. Having a well rounded portfolio is always better than half a strategy.
