Asset allocation means deciding what portion of your portfolio to invest in different asset classes, like stocks, bonds and cash. Diversification is the spreading of your investments both among and within different asset classes. And rebalancing means making regular adjustments to ensure you are hitting your target allocation. All are important tools in managing investment risk.
There is nothing inherently dangerous about leveraged funds so long as the trader/investor is educated. There are hazards in many areas of trading - are we to ban trading Options as well ? Then ban trading the day before earnings announcements too ? Where does it end ?
All financial investments come with risks. Yes, some people will gamble their money away, but protecting people from themselves is not the appropriate role of this regulatory body. This is not an issue of protecting retail investors from fraud. The risks are well known and disclosed.
The risks with leveraged ETFs are very well accessible to the public. Investors have the right to take such decisions that result in a volatile portfolio. I may be a professional financial analyst, but leveraged ETFs should be available to anyone willing to learn and take the risks associated.
I am well aware of the risks with trading leveraged funds. This right should not be regulated! It is not any riskier than trading options or and other investments. The individual has a right to take the risks. DO NOT CENSOR OR TAKE AWAY MY RIGHTS TO CHOOSE!!!!!!
Everybody should have the right to invest in different currency,properties and stocks as well. People should be to choose public investments that are right for you and your family. It shouldn't be just the privileged that have a say. Everybody should have the right to do so.
Comments: i understand that leveraged products are for short term trading and have increased volatility. If used correctly within a portfolio they can actually reduce risk. Limiting access to these products would damage my ability to create a well doversified portfolio
I have used leverage index mutual funds and ETF's as part of my investing methodology for the past 15 years. I understand the downside as well as the upside potential. Making these funds unavailable or difficult to purchase would severely limit my investing success.
I strongly oppose restrictions on my trading accounts. Why would you do this? I have been trading these vehicles for years. You may well be opening yourselves up to class action lawsuits.You would be interfering with peoples ability to earn a living.
I understand that government is trying to protect public from getting into ruinous investments, however currently existing mechanisms for risk management between brokers and investors are working well. I don't think that the regulators should limit what public investments I am making.
