People need to take responsibility for understanding and placing money in these instruments. We don't need government intrusion. You can use the same argument for options. People generally don't understand them and if they don't they shouldn't trade options. If they do and lose money then it's on the individual.
There is always a winner and a loser in the global equities market and accordingly there is a side to every trade. To enforce that one may not buy certain securities also warrants the same restriction on selling of such securities. In other words - this should not be a notice that will be enforced, as you will be leaving plenty of investors on a figurative island.
There is no reason to outlaw these products further, elimination is not helpful. People should have the ability to trade these products if the marketplace can provide them in a product structure that does what it says it will do. Perhaps warnings are needed, that's fine. But a repeal of already approved products makes no sense.
Information about a product you invest in is incredibly important, and I think ensuring brokerages are properly informing retail investors about the risks of the product they are investing in would benefit everyone involved. However, I find the proposed regulations of forcing those holding leveraged products to sell at the end of every day and limiting capping profits/losses of a leveraged
Each investment carries its own set of risks. The basis of the free market is the principle that investors must bare the consequences of their investments whether the results are beneficial or detrimental. Providing information of risks is a beneficial service, but trading restrictions could harm smart investors with limited resources.
I often use leveraged and inverse funds to make directional trades in the stock market. I also use these types of funds to hedge other investments in my account. I understand the risks associated with them and hope that additional regulations will not be added that would limit my access to these types of funds.
I oppose any proposal to limit my freedom to invest in leveraged and/or inverse funds. I fully understand these investments and use them to hedge my portfolio risks. I do not see any need for forcing me to go through a special process in order to trade these instruments.
It's on the diligence of the investor to know what they are investing in. If you believe buying and selling leveraged ETF's is too risky for investors what about regular stocks? Should retail investors take tests to see if they can trade public securities? The market is speculation, there is always risk.
Good morning, I believe this proposal is wrong! People investing should be able to invest in the funds/stocks that they would like. Having more regulations on things like this would help to keep the smaller man down. There should be no reason for someone that understands trading to do as they fell is right for themselves.
I strongly object to paternalistic obstacles to my investment choices. A much greater threat to investors is the permitted use of non-GAAP earnings by an increasing number of publicly traded companies. Work with other regulators to stop the blatant distortions of financial performance. Let investors chose the vehicles for their investments.
