Please do not limit our ability to invest in what you deem as "complex products". Trust investors who do not require a big brother to permit them to invest in products outside of the overall stock market. Leverage and shorting or using inverse funds can offer superior returns or prevent a loss in a portfolio.
Greetings, Without the ability to trade leveraged/geared funds many main street investors will fall short of a viable savings to retire securely. Given the shortcomings of our elected officials to address fair and equitable Social Security reform it is up to us and the current wide range of investment options to secure our own future.
John Gannon Testimony - July 16, 2008: Testimony Before the
Special Committee on Aging
United States Senate
I use leveraged products as a small part of my portfolio to both hedge as well as enhance gains. I learned to use these leveraged products from the information provided to me on provider web sites well informed of the dangers "that these are not long term" investment strategies. I have gained from both short and long leveraged products.
Inverse funds help me protect/hedge my investments especially within accounts where using alternative methods (i.e. shorting, derivatives, etc.) is not available. Leveraged funds help me enhance my returns in a similar manner except to the upside in, mostly retirement, accounts where options trading isn't available.
SUGGESTED ROUTING
Senior ManagementInternal AuditLegal & ComplianceOperations
Executive Summary
On August 13, 1993, the Securities and Exchange Commission (SEC) issued a no-action letter that allows broker/dealers to treat foreign equity securities listed on the FT-Actuaries World Indexes (Indexes) as having a "ready market" under SEC Rule 15c3-1 (net capital rule
Allowing investors to purchase leveraged ETFs, in actuality, reduces their personal liability. The alternative is for higher interest and personally guaranteed margin loans. Additionally, margin loans lead to forced selling when prices fall - which can cause panics all by themselves.
I OPPOSE limitations on the investment. It is my right to buy leveraged and inverse funds like UltraPro and UltraPro Short funds. Public investments should be available to all of the public, not just the privileged. I understand leveraged and inverse funds and their risks. I use them to protect my investment and they are very important tools in my investment strategy.
I object to applying restrictive regulations to investors trading in ETFs that are leveraged to 2x or 3x. The same for those ETFs that are reversely indexed. The reverse investment ETFs are an especially convenient and efficient alternate to the "shorting" of stock trades. Do not differentiate between leveraged or reversed ETFs and the usual form of ETFs. Simply leave a good thing as it
I am not interested in getting help from a government agency deciding what investments are suitable for me. The existing restrictions have already gone too far. I use leveraged and specialized ETFs in my IRA to compensate for the lack of choices in my employer's 401k.
