I don't believe that it should be necessary to have any sort of 'test' or other requirements to invest in leveraged funds. While there are risks, potentially substantial, the bulk of brokers require today that you sign a statement understanding the risks of leveraged investing.
Perhaps the compromise should NOT be to move leveraged investing to non-public forms, but to
I'm offended by the arrogant supposition that investors are somehow incapable of managing their investment risk and trading, investment, and hedging strategies. Leveraged and inverse funds are valuable and innovative tools that actually allow prudent investors to decrease/manage risk and improve tax efficiency. Any regulatory attempts to restrict the availability and utility of these
I do not want the proposed restrictions placed upon retail traders.
I should be able to trade in public investments freely. I am fully aware of the risks with leveraged and inverse funds and should be able to accept those risks without government intervention.
Regulations should only be implemented when my acceptance of risk effects others, like not wearing seatbelts increasing insurance
I use leveraged ETFs as a part of my portfolio. I have spent a lot of time understanding the behavior and increased volatility of these funds. I think it's important that I have access to the same securities as any privileged investors in order to have access to the same kinds of returns on my portfolio. I understand that different investments have different risks. I prefer the risks
A reasonable review of an investors competence could provide value for these leveraged products. However, having invested for twenty years on my own, I will say there's less knowledge required and less risk in these products than individual options. Similar to leveraged products, individual stock options can also be used as a hedge or to provide higher growth potential, however, they take
Comments: I strongly feel that the proposal to limit access to Inverse and leveraged ETFs is ill advised. The investors (like me) who understand how these ETFs work and understand the risk, should be allowed to invest and benefit. Personally I review my investments on daily basis. The risk of investing in certain volatile individual stocks is lot more than investing Inverse and leveraged ETFs.
SUGGESTED ROUTING
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Executive Summary
On February 8, 1995, the Securities and Exchange Commission (SEC) approved a new Part XII to Schedule C of the NASD By-Laws prescribing requirements for the
I'm very disappointed to hear that regulators may restrict our ability to trade publicly traded inverse funds. I use these funds regularly to hedge a small part of my total portfolio to add protection in a declining market. I am aware of the risks of doing this, just as I am aware of the risks of investing in an publicly traded security. Restricting the purchase of these leverage funds would
I don't think there should be limited access to inverse or leveraged funds. These investments allowed protection from the recent market down turn and increased inflation and energy prices by affording me the opportunity as a smaller investor to take positions in the market for protection that normally would only be available to institutional investors thru the futures or options market. All
It is your duty to know your risk when you make an investment. The investor needs to be provided with the benefit of doubt that sufficient due diligence is completed, before the investment is made. Opportunity and risk must go hand in hand. The risk in opening a business is significantly greater than these investments and anyone can open a business with minimal restrictions. A person opening
