Regularly Use inverse funds as a head to my portfolio. Usually 80% long and 20% short. (Inverse). Provides an excellent hedge to my portfolio. Limiting my Inverse allocation will put my portfolio at higher risk - all the sector in the market go higher every year? Change sector allocation once a year.
Leveraged risk can be highly risky but also highly rewarding. For a long term retail investor it allows me to take advantage of volatility and significant swings in the markets. No one has a foot on my neck telling me how to assess risk/reward ratios . Would be very upsetting if the small guy was unable to access these instruments .
Why do you need to remove a risk management tool from the individual investor. I have used both leveraged funds and inverse in my portfolio to augment my other investments and find them very useful.
If you want to "protect and educate" the consumer--develop a core study for high school students on financial literacy.
I have been investing in these ETFs for years. They allow me to diversity and to reduce my risk as I grow older. They also allow me to simplify my investment strategy. Restricting them would greatly dimmish my ability to invest, which I would consider a denial of my freedom to act in my own best interest.
The choice to invest should be incumbent on the individual investor risk and reward, and there should be no separation of access based on financial status.
The premise of changing behavior by regulation is flawed in every form it has been attempted. Especially with investing, new instruments or alternative instruments will be used, and I prefer to use leveraged assets which are connected to a
I oppose to the restricting of what I can or cannot invest in with my hard earned money. I manage my own retirement accounts and have done well with leveraging positive and negative ETFs. Sometimes to a 4 to 6 times increase. I am well aware of the risks I take and I shouldn't be limited based on my net worth or lack of "formal" education.
I would like to freely be able to invest my hard working earned money in any trust that I find suitable to my and my familys future. If Im taking a risk I would like to be the responsible person to be able judge my actions based on that without the interference of any other entities dictating to me where to invest.
I believe that inverse ETFs, when used properly, are an economical and relatively low risk way to hedge equity portfolios. I have avoided serious losses in the current bear market due to the availability of these products. Restriction of these products would be a disservice to smaller investors who wish to avoid the cost of options and the extreme leverage of the futures markets.
How I invest is none of your concern, nor is it any of your business. Why should anyone wanting to invest have to show a high net worth or read any material regarding investments? That is absolutely ridiculous. Stop trying to keep the little man down. If I choose to take a risk, that is my right in the pursuit of happiness.
As an investor, I have used leveraged investments as part of my strategy for years. I already receive several warnings before trading my leveraged ETFs and I am fully aware of the risks and take full responsibility for the actions I take. Please do not put any further restrictions in place and allow the average investor the opportunity to invest in these types of securities.