I believe that the current proposals to invest in leveraged and inverse funds are wrong headed. First, these funds are an efficient way to use margin vs a traditional margin account. Second, it is my responsibility to make investment decisions not the regulators. Third these are great tools for hedging risk that are not available except by using margin and exposing myself to higher cost and fees
I have traded these leveraged and inverse funds for many years. They should be available to all not select few. The test is just another unnecessary bureaucratic hurdle for people who can read and understand the risk. These funds are useful in short term trading as an overnight or 2-3 day vehicle that can be used with less leverage than a futures contract. Your consideration appreciated.
Investing in publicly traded securities is an individual investors right and they are fully accountable for the results (positive or negative). You may ask them to sign an additional waiver / acknowledgment of the risks but you should not restrict them. Additionally, You may put disclosure requirements on these leveraged and inverse funds to improve transparency to the investors. As a regulatory
I believe as an experienced investor that I should be able to use leveraged funds to enhance returns on my portfolio or in the case of inverse funds to hedge and protect on the downside for my portfolio. If not allowed to choose my only option would be to open a margin account and use leverage open myself to possibility of margin calls or to potentially short a stock that has unlimited risk.
I do not think this is fair for low networth investor who may not have opportunity to earn high return vs high networth investors. It is discrimination because public investment should be available to everyone without restriction or requirement to obtain any special training. You can give notice of high risk speculation but cannot regulate public investments.
I oppose any legislation restricting my right to invest in any public investments. I, not regulators, should be able to choose the public investments that are right for me and should be available to all of the public, not just the privileged. I am perfectly capable of understanding leveraged and inverse funds and their risks. I shouldn't have to go through any special process before
I believe individuals can and should do proper research and use their own abilities to assess risk exposure. The ability to trade inverse and leveraged funds is indispensable and key to holding a balanced portfolio or responding to volatility in the market. Without inverse funds I personally would have to pull my assets out of the market to react to current and possible future market conditions.
I use levered funds such as TQQQ and Reverse levered funds such as SQQQ to trade for the purpose of supplementing my IRA savings, since I am long retired and I have two degrees in Electrical Engineering and 32 years experience in Research and Development of Geophysical tech. My broker displays the risks involved before I place a trade. Thank You very much.
This ridiculous! Another non-reglulator trying to take decision-making authority away from the very people that CHOOSE to invest in leveraged products. Shameful! We know the risks. Why this particular investment class??? Is that through this proposal, you are broadcasting events to come? Thank you, but NO! I trust my own judgement over boards, and regulators. This bad idea needs to scrapped!
Taking the rights of investors away, to choose their investments regardless of how risky or silly they may be perceived to be, really runs contrary to the goals of free markets. Yes, put warning and red flags in place to warn potential investors that certain funds are very risky, but do not restrict our ability to choose the amounts of risk we take in our individual portfolios.
