Samuel Safahi Comment On Regulatory Notice 22-08
Cmon man
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I should be able to choose the public investments that are right for me and my family. Public investments should be available to all of the public, not just the privileged. I use these funds to protect (hedge) my investments when I see risk coming into the market.
I not regulators should be able to choose the public investments that are right for I and my family. Public investments should be available to all of the public, not just the privileged. I shouldn't have to go through any special process like passing a test before I can invest in public securities, like leveraged and inverse funds. I am capable of understanding leveraged and inverse funds and their risks. I do not need these measures imposed on me. Leveraged and inverse funds are important to my investment strategies. I have to able to hedge my portfolio in this risky environment.
Why is the government getting in my way to trade with my own money? Shouldnt the government simply be concerned with making sure that the public companies provide the most accurate and relevant financial data in a timely manner, instead of assuming that I am stupid and a bad steward of my own finances and feeling the need to create more regulations?
I am a retired college teacher and have been managing my own investments for over 30 years. I am quite capable of learning about and choosing the investments that are best for me. All investments should be available to all people, not just the privileged few. I was able to retire because I had access to all kinds of assets to carry out specific strategies in varying market conditions over the years. No tests or restrictions are needed. Don't fix what isn't broken!
Please do not proceed with deciding for me what investments I should and should not make. The kind of restrictions you propose for leveraged and inverse funds are vital for many investors, including me, to balance out our risk in a in an overall portfolio. Even "rocksolid" companies can be risky e.g. Lehman brothers, Washington Mutual, Enron etc. We need the flexibility to counteract possible negative results in some sectors/shares by investing in alternative and even contrary investments. In summary, please don't decide what is best for me - let me do that.
I use leveraged etfs as a part of an investment portfolio. These products are now a fundamental part of what I do in business and for personal investments. They provide a convenient means of achieving what would otherwise require the use of options or futures. Indeed, I have compared the performance of leveraged etfs and futures and found the etfs perform similarly enough that I continue to use them and benefit.
I understand the risks associated with leveraged and inverse funds and it is my decision to take that risk.
It is extremely important to me that I maintain at least the current level of freedom to flexibly and effectively invest via leveraged and inverse ETF products. Such instruments allow me to produce suitable returns while simultaneously limiting my capital outlay. They allow me to hold greater cash reserves for safety while I produce the cash flow I need to supplement my current family income and future retirement planning. Importantly, they facilitate my downside protection without exposing me to short selling. Many of them allow me to access commodity and FOREX markets more efficiently.