Tim French Comment On Regulatory Notice 22-08
I oppose restrictions on my right to invest in public investments. Leveraged and inverse funds are useful investments.
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I oppose restrictions on my right to invest in public investments. Leveraged and inverse funds are useful investments.
While I agree there is increased risk to leveraged ETF's, I do not think they should be removed for investment by regulators. ETf's are a great way to make money in bear markets, and on certain sectors of the financial markets. I do believe in educating investors and warning them as much as possible about the increased risks and time decay of ETFs. Also any financial institution that holds these ETFS should NOT remove them just because it doesn't work for them financially at a given time. example TVIX.
Markets dont always go up and having the ability to protect myself on a down turn (as were seeing right now), is part, in my opinion, of a balanced portfolio and good strategy!
I see no benefit to me as a small investor, for these types of investments to be further restricted or eliminated.
Those of us who use leveraged and inverse funds do so to hedge our portfolios. We are not children, and do NOT need you to hold our hands. Please mind your own business!
Why does the government always stand in the way of ordinary citizens trying to get ahead? Wish we could elect officials who only had our best interest at heart, that would treat us as the educated adults we are, and stay out of our way.
I use inverse ETFs, sometimes even leveraged ETFs, and Options as portfolio insurance in case the so-called financial experts in Washington screw up the economy. Yeah pretty much like right now.
Using proshares makes it quick and easy for me to hedge my positions in a down market by buying some sdow or sqqq. Whether going long or short it simplifies things for me.
Its important for me to contact you about inverse and downwardly leveraged funds.
1. I should have the right to choose my own investments, not the government, when there is nothing special about them.
2. I shouldnt have to go through any special process, particularly not one run by the government, before taking an inverse or leveraged fund.
3. Leveraged and inverse funds are a regular part of my investment process.
4. Insurance funds may also need leveraged and inverse funds for their portfolios.
Is freedom only for the wealthy?
Is it only those with large bank accounts and specialized investment knowledge that are "allowed" to make decisions, good or bad, about the money they've earned and where they will invest it?
Does our status as legal aged adults no longer qualify us to take responsibility for our choices and determine our future?
Limiting the instruments available to retail investors does not protect them. It limits diversification and the ability to allocate investments in a manner appropriate to our individual investment goals.