(a) Leveraged and inverse funds allow small retail investor like me to hedge/ protect against the massive swing we are having in the market due to the tremendous leverage available to hedge/ institutional funds
(b) We understand that there are fees/ costs and risks associated with these leverage and inverse funds, but it is better to have them, than not!
Dear FINRA,
Please allow retail investors to continue investing in leverage and inverse ETFs. I understand the risks however they also allow me to hedge against uncertainties in the market. I think retail investors should have the same advantages as the market makers. Thank you for talking the time to read my comment.
Leveraged etfs are a great financial tool that bridge the gap between risky options and buying non leveraged funds. For many retail investors we use these in ways that are not risky and hedge our risk. Removing them only harms retail traders as a whole forcing them to use other riskier strategies.
To Whom it May Concern:
I am deeply troubled by the notion that the right of investors to access leveraged and/or inverse funds might be affected by new regulations. These funds are extremely important tools that help ordinary investors manage risk intelligently. Please do not make any changes - the current regulations are appropriate and correct.
FINRA:
I oppose restrictions to my right to invest I should be able to choose the public investments that is right for me. Public investments should be available to all not just the privileged ones. I am capable of understanding leveraged and inverse funds and their risks. Leverage and inverse funds is a way I use to enhance returns.
Regards,
Yamil
I use the leveraged and inverse funds as important tools for me to hedge and speculate at the appropriate time to complement my stock portfolio. Over the years, I've learned the risks and rewards of these funds. There should be some minimal restrictions on the usage of public investments to protect new or beginner investors, but not experience investors. Thank you.
I oppose restrictions on my right to invest in public investments.
I should be able to choose the public investments that are right for me and your family. Public investments should be available to all of the public, not just the privileged.
I am capable of understanding leveraged and inverse funds and their risks and regulators do not need to impose measures on me.
Use of derivatives was proposed by Anddre Perod of Harvard Business School in about 2000 at the HBS Investment Management lectures. Security markets are not a one-way street, he explained. It is a good way to hedge portfoliios, and with leverage it can provide an efficient use of capital so long as there is an appropiate risk discipline as volatility is maximized.
I currently invest in BITO to diversify my portfolio risk so that I'm not too concentrated in any one asset class. Taking away this ability would only hurt me and countless others.
Investing should be a level playing field for everybody. Requiring certain account balance thresholds is completely unfair.
Stop another power grab by big banks! Position sizing and trade stops are the main ways to reduce risk. Where is your support on those tools?
All the regulations will do is to give exclusive access to special entities, that could enrich themselves or re-sell the same investments as a "service" to individual investors.
No thanks.
