Herman Rosenbusch Comment On Regulatory Notice 22-08
I strongly oppose any attempt to take away my freedom to invest. And it is especially bad to limit my ability to invest against a current trend.
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I strongly oppose any attempt to take away my freedom to invest. And it is especially bad to limit my ability to invest against a current trend.
I want to be able to trade any investment product under my own assumed risk
I should have the right to be able to choose the public investment that suits me. It would be unfair that public investment should be open to all members of the public, not just the privileged. I understand the risks of leveraged and inverse funds in my investing process. I'm also operating while I can take the risk myself, and regulators don't need to impose restrictions. Leveraged and inverse funds are important to my investment strategy.
You do not know what's good for me, and preventing me from investing in leveraged/inverse funds is overreach. Why should the rich only be allowed to use these tools, but not me? Also, logically, if I can't lever up via ETFs, why am I even allowed to use options with very little oversight to obtain leverage? It's nonsense, and will probably just further income inequality.
I own dozens of leveraged closed end funds and do not want access to these types of funds hindered in any way. I am fully capable of understanding the risks involved in investing in these types of funds and do not need any legislation to protect me from investing in these funds which are an important part of my investment portfolio. I have owned leveraged funds for years. I would suggest you read the works of Steven Bavaria to understand that investing in these types of funds are of great benefit to the average investor.
I have managed my portfolio myself and have outperformed the market for 2022 I have done this in no small part to the downside protection offered by inverse ETFs. They allow the average investor to take short action in the market without the necessary headache of a margin account. Attempts to restrict this are misguided and will only hurt the smaller investors they intend to help. Inverse ETFs and short ETFs are some of the most innovative products to come out in the last 15 years, they HELP, not hurt average investors.
Another attempt for those in control to control the masses. No limitation should ever exist as this is often the only way to hedge market risk. I have a 401k that offers NO brokerage access and I contend leaves more market risk without the ability to play various sides with funds like these. They can protect coming market disasters that could be hard to mitigate otherwise; and allow easy general market upside participation. Isn't it convenient to further place the fish in a smaller barrel. Enough!
You shouldn't have to go through any special process like passing a test before you can invest in public securities. Explain that you are capable of understanding your investments and their risks. Tell regulators you do not need these measures imposed on you. I not regulators should be able to choose the public investments that are right for you and your family. Public investments should be available to all of the public, not just the privileged.
I feel it is important for an individual investor to choose investments that are right for them, this includes leveraged and inverse funds that can greatly benefit an investor and provide enhanced returns, I am perfectly capable to understand the associated risks. Investment choices should not be restricted.
I am in favor of investment in complex and risky assets being HIGHLY regulated. These crap shot 'investments' are there for the financial industry to make money from unsuspecting and unsophisticated investors. If they even exist they should be strongly regulated.