Please do not restrict the right to invest in leveraged ETFs.
I have a PhD and have published in economics journals, so I have some expertise in this area.
Investors are currently allowed to borrow up to 50% of the value of their investments, so it is already possible to achieve leverage through these vehicles. But when the value of those investments fall it can lead to margin calls that require
This follow-up to the September 2021 targeted exam (sweep) of firms’ practices related to their acquisition of customers through social media channels and their sharing of customers’ usage information with affiliates and non-affiliated third parties summarizes selected practices FINRA has observed firms implement to this point in the sweep.
This is completely unacceptable. If I as an investor decide to take a calculated risk based on my research, that is my decision to make. There shouldn't be any hindrances on how I invest my capital since I am assuming the risk. This rule effectively decides the investor's risk tolerance for them.
Comments: I am a licensed 6,7,63,65 FA, it has been 17 years since I passed my series 6 exam. I have a BS in Business and a MBA. I have almost 30 years of banking and finance experience. Leveraged ETFs are misunderstood and misevaluated by regulators and investors. If you examine the returns of leveraged ETFs that track major indices you will find that while they do not offer a superior "
Comments: As an RIA and CFP Professional with over two decades experience I can tell you that retail investors are far more experienced, savvy and informed than when I started in the business. Teenagers invest through their phones, something I never dreamed of at their age. The disclosure and consumer warnings required by leveraged products providers more than addresses the risks involved in
Risk is part of the process of thriving. We take a risk when we get married, when we buy a home or when we take a new medication. Do not take away from people the risk of being part of this era changing investment opportunity. [REDACTED]
The regulatory action being considered to limit investment in leveraged and inverse funds is an overreach of regulator responsibility. Investing in any publicly traded security carries inherent risk. Every brokerage account already warns of the risk of loss. Additional measures are not required to convey those risks to the investor.
Any restrictions on the investment opportunities of retail investors are fundamentally misguided. Though an increase in due diligence might be helpful in guaranteeing brokers do not offer inappropriate investment advice to their under-informed clients (which is already disallowed), anyone who is willing to read the prospectuses and understand the products they are investing in should be
No one should manage my money but me. The risks of these products is spelled out clearly and carry similar risks of other unregulated or loosely regulated products. Where does babysitting consumers end? Adults need to understand consequences of their actions. If you don't understand the risks, hire a professional.
This is the point of investing. I do not need the government deciding what my risk tolerance is and by locking down these tools to only those you deem worthy risks upsetting the balance of 'free' markets. There should be careful consideration of your own downside risk that would arise due to this proposal.
