Leveraged and inverse funds are a valuable tool for maximizing
short term gains and protecting your portfolio in volatile markets. I understand the concerns but I think it's a big overreach restrict the use of these funds by individuals.
Its my money. These leverage funds only thing protecting my accounts during crashes.
What, i have to increase risk and short now, or maybe worse, buying constantly expiring puts?
Finra would be better served finding a way to stop unregulated shorting of many securities in the US markets. This action against Leveraged and Inverse funds inhibits a hedging mechanism that is useful to individual investors.
I know what I am doing. I know and accept the downside risk. The leverage of these securities means I do not need to use expensive margin debt or enter into risky short sales. I am delighted with these products.
Stop. This is none of your business and you don't know what you're doing. An efficient market needs investors on both sides of a trade....buyers and sellers, long and short, who are responsible for their trades. Not you.
Stop chipping away on our rights! Everyone has the right to invest and it must stay that way! The efforts of turning this country from a democracy into an oligarchy are are very see through and nothing short of illegal.
Leveraged and inverse funds are an important part of my investment strategy. I'm reluctant to be a short seller given the risk, however, with an inverse fund, I can still grow my portfolio in an overall downtrend.
Comments: My comment is I study the markets daily and I have a MBA in Finance. I understand the risks of the leveraged and inverse ETFS. I trade the products as part of a comprehensive overall strategy on a short term trade basis.
Inverse funds are helpfully in a down market. I am using one with success. They are an alternate for shorting in retirement accounts. However, I believe some details in how they are structured could make them more useful.
I am Barry R. Goldsmith, Executive Vice President for Enforcement of NASD Regulation, Inc. (NASDR). NASDR and its parent, the National Association of Securities Dealers, Inc. (NASD®), would like to thank the Subcommittee for this opportunity to testify at today’s hearing.
