Canhao Li Comment On Regulatory Notice 22-08
Adaptation of the Chinese method of controling the individual investors?!
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Adaptation of the Chinese method of controling the individual investors?!
Dear regulators,
I believe, the US is a free country and it should be my choice of what I want to invest into and what not, not you. I originally came from a communist country where the government and regulators controlled and regulated every citizens' life. You are starting to remind me of those days.
Buying inverse and leveraged funds should be up to the individual investor not regulators. Should regulators have judged ARKK shares to be too risky and require special training in order to lose money in it? Should regulators require full disclosure, of course. Should they make investment decisions, of course not. If the regulators take away my ability to buy leveraged inverse investments and the market drops dramatically will they write me a check to cover my unhedged losses? Please try to make markets as free as possible. Disclosure good, government control bad.
I have invested in both leveraged and inverse funds for a long time. The leveraged funds increase my potential gain and inverse funds give me protection from downturns and I don't want the regulators to meddle with my investments unless they can show me investments that only make gains and never lose. Also, before proposing such regulations they should clearly state their objective and show us the facts and logic behind how the regulation will achieve it as well as their own qualifications and investment track record to formulate it.
We do NOT need any new regulations.
I am opposed to regulators interfering or restricting my rights as an investor. I use ETFs like these to enhance returns and often times even to protect me from downside risk (i.e. buying a market leveraged inverse when my portfolio has had outsized returns). I feel the regulators job should be one to provide information so people understand the risk, I don't feel they should limit my investment options or reduce the products I have available to me. This only serves to hurt the retail investor not help them. I appreciate the consideration.
Gentlemen, I was quite surprised to hear that you would be trying to further control how and why I invest my money. I completely understand prospectus, and I have the right to make or lose money as I see fit. I do not need your oversight, and I do not appreciate any additional regulation on my investing.
I have been investing in inverse funds, leveraged funds and other exchange ETFs for many years and the idea that anybody would try to come in and control my ability to invest is totally contrary to the freedoms I am accustom to in this country.
I should continue to have a choice!
I have been using inverse/leveraged funds for over 7 years now. When I started I was new to trading. I did all the research on the funds as that was my responsibility as a trader. The brokers I use all explained in great detail the risks of trading these types of funds.
Everyone should have the right to trade these types of investments. It should not be based on how much wealth you have. These are public funds and should remain that way.
Please We have no other way to hedge our investments. There is more than enough info out there to explain these investment vehicles. The leveraged instruments have been out for years.