Michael Koehnlein Comment On Regulatory Notice 22-08
Dont classify pro shares as complex
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Dont classify pro shares as complex
Please do not impose additional regulations on inverse and leveraged funds. These are valuable tools used by investors to balance their portfolios, and also to hedge against macro economic risk. Without the benefit of these funds the ability to hedge the risk in my investment portfolio would be greatly diminished. Please let investors decide what they should invest in.
The proposed additional restrictions are profoundly immoral and wrong. Every individual should be free to choose how to invest their wealth however they see fit. Status quo restrictions on leveraged investment vehicles are already unnecessary and overbearing. The very existence of the status "accredited investor" is a grotesque outrage, and should be condemned by anyone who actually believes in any semblance of freedom.
Were not stupid as you think
Please do not regulate or remove our access to weighted ETF's. I use these when market sentiment has gotten bad and stocks are down. It is my hedge to help me recover losses in my core holdings. I believe it is safer than a stock option because there is no time expiration and there is diversification. All I need is patience with it. It is a necessary tool to allow me to hold my core holdings and reverse losses that occur when not selling when a downturn happens in the market.
Options typically trade at 10x or more leverage depending on strike price. Leveraged and inverse funds trade from 2x to 3x and do not expire. If investors are no longer allowed to use leveraged and inverse funds, they will simply trade options which are even riskier than leveraged funds. Additionally options often expire worthless. Banning leveraged and inverse funds simply signals to investors that the government would rather have them trade riskier derivative assets such as options, which makes little sense.
Leveraged assets are an important investment option for the general public, and should not be restricted to a limited set of investors
I oppose regulations that limit investment in inverse and leveraged funds.
I should be able to choose the public investments that are right for me. Public investments should be available to all of the public, not just the privileged.
I am capable of understanding leveraged and inverse funds
and their risks. The regulators do not need these measures imposed on me.
Leveraged and inverse funds are important to my investment strategies. I use leverage and inverse funds to hedge my investments or seek enhanced returns,
Regulators should not interfere with how investors on how or what types of asset classes they can invest in. This is akin to them telling me how to spend my hard earned money. No thank you.