I have not used leveraged funds but inverse funds are an important part of my investment strategy as protection against market downturns and also for selling options. Brokerage companies already issue appropriate warnings to their customers re: risks. Please do not restrict access to these funds.
I don't believe small individual investors should be limited from investing utilizing leverage as long as they accept the risks. These inverse and leverage funds allow small investors to reduce the slippage inherent in trading options. The assumption that a small investor is a stupid investor is elitist and insulting.
You shouldn't have to go through any special process like passing a test before you can invest in public securities.
Explain that you are capable of understanding your
investments and their risks. Tell regulators you do not need
these measures imposed on you.
Regulators should not choose what investors or traders can put their money to work. I have traded in inverse and leveraged ETFs and that is my choice and my risk. These vehicles are an important part of a trader's tools. Do not screw this up by denying traders the ability to trade these vehicle.
I'm in favor of trader/investor *education* but not additional restrictions. In fact, I oppose PDT because $25000 is an inappropriate amount of money to risk while learning. $1000 would be plenty to learn how to trade. It's the transaction quantity that builds experience. Thousands are required to learn effectively.
I'd like to voice my concern about the potential to restrict investing access to leveraged and inverse funds. These products help investors protect their portfolio and the risks are understood. Changing the rules now when portfolios need protection the most is careless, reckless, and risky for investors.
I have been using leveraged funds for years. People should have the freedom to choose their investment vehicles. Risks are on their shoulders. You learn from both good and bad experiences when investing. Please don't limit the options available to the every day investor.
I believe it is imperative to allow the average investor the same opportunities availed to wealthy ones regarding access to leveraged investments. Of course any investor should educate himself regarding the risks of any investment, but we dont need to be saved from ourselves by government fiat.
I should be free to choose how and with whom I invest my own money. I do not need any third party to qualify me or an investment before I choose to willingly make it. I do not need forced "protection" and should be allowed to take any risk I feel appropriate.
I understand the benefits and risks of investing in both leveraged and inverse funds. I make my own investment decisions. These funds are public securities. Regulators should not establish any rules or procedures that would inhibit my ability to invest in leveraged or inverse funds. Thank you.
