Andrew Glowa Comment On Regulatory Notice 22-08
Please do not limit our ability to invest in leveraged products.
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Please do not limit our ability to invest in leveraged products.
As a personal investor, I understand the risk and reward with leveraged products. In todays time, there is plenty of information available for someone to make an informed decision around suitability. They are not for everyone, but for those that understand the risk, they can be a great addition to their portfolio. There does not need to be regulation around self-directed investing.
Easy and universal access to leveraged and inverse funds should not be hindered. These inbvestment vehicles provide unique opportunities for investors of all types. They are transparent and have a liquid market for investors. Speculative nvestments in individual stock positions can be far more dangerous to individual investors, but no one would ever consider limiting those abilities. This is a solution to a problem that doesn't exist.
I currently enjoy my right to choose my own financial investments. I don't want to go through a special process to invest in securities that I am fully capable of understanding. Please leave this alone and don't change anything or add any new rules for investment in these leveraged funds.
I was born and raised in Eastern Europe during the Cold War when the socialist governments were choosing what is allowed for the individuals. USA became my second homeland because of the freedom of the people to conduct their own business. Individual investor should choose their investments, not regulators. The Financial Industry Regulatory Authority (FINRA) notice from March 8, 2022, seeking comment on measures that could prevent or restrict investors from buying a broad range of public securities, is against the freedom of investors. This is not what a free market is all about.
Regulators shouldn't be able to decide what I can and cannot invest in. I am capable of understanding the risks involved with inverse and leveraged funds without going through any special processes. Leveraged and inverse funds provide unique opportunities to grow my capital that other securities cannot provide like hedging and enhancing my portfolio. I'm just a college student with a small amount of money trying to build wealth in a crazy market. I have been very successful so far and I do not want regulators messing up my investment strategy.
Leveraged ETFs provide a valuable benefit to shareholders of all kinds. They generally allow exposure to go long or short an index and magnify that exposure, without the use of complex options which can quickly destroy a portfolio just by the passage of time. I personally use these leveraged ETFs to take advantage of making trading profits such that I not dependent on a buy and hold strategy or for market indexes to make a comeback (just ask investors in Japan how long a market index can stay down for - 25+ years in Japan).
If an investor is savvy enough to invest in a leveraged ETF, then its their option to. Do not take that option away from them.
I am an everyday investor but have found leveraged funds to be a huge benefit. Do not limit our ability to make money and limit it to yourself, large corporations, and politicians.
What you are proposing is completely unethical and will only exacerbate the already growing wealth gap in America. A leveraged S&P 500 fund is an excellent vehicle growing wealth. Even people with just a few bucks in their Robinhood account can invest in it. You should drop your support for this bill for the same reason you wouldn't support the government doing this for all stocks and ETFs. Penny stocks pose just as much risk yet they don't have these restrictions. This bill has good intentions but will negative consequences.