Scott Hutchins Comment On Regulatory Notice 22-08
This is severe over-reach by regulators in limiting investors options to invest or hedge their portfolios efficiently.
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This is severe over-reach by regulators in limiting investors options to invest or hedge their portfolios efficiently.
Markets go up and down. There should be easily accessible options to invest in both trends. Walling off "short" products or creating a maze of (additional) regulation does not help the average investor, it hinders them. As a matter of fact, an argument can be made that some of the more liquid, unleveraged short products should be offered in 401k platforms, giving participants maximum choice.
Instead of focusing on restricting retail investors, organizations and bureaucracies should be focused on helping individuals become better investors. Restricting access to these investment classes is not only patronizing, it restricts individual ability to access tools that make meaningful contributions to ones portfolio. This is, frankly, a classist proposal and should be rejected.
It is a "free market", and hence I not regulators should be able to choose the public investments that are right for me and my family. Public investments should be available to all the public, not just the privileged. I shouldn't have to go through any special process like passing a test before I can invest in public securities, like leveraged and inverse funds. I have sat for Chartered Financial Analyst examinations, and I am capable of understanding leveraged and inverse funds and their risks. I do not need these measures imposed on me.
Hello, I am a retail investor. I am one of many individual investors who lives month to month. I am a 100% disabled veteran and Ive been invested since the moment I got my disability. I mostly trade inverse and leveraged ETFs and ETNs. Since I began trading in 2020, I have made almost 300% returns. I am a traditional buy and hold investor. I know these investment vehicles are supposed to be in and out plays, but Im up over 1000% on one of my holdings, and up 300% on two others.
I oppose this new regulation
No new regulations need to be added. Protecting retail investors is just an excuse. Everyone enters knowing the risk they face. Everyone accept their own mistakes, they don't think to themselves if only the government had stopped me. Even if a few undisciplined traders fail, doesn't mean everyone else should be punished. Leverage assets can either make you or break you. Yet politicians would rather we go gamble at the casino.
Inverse ETF's are not exceedingly complex financial instruments. In addition, they can be used easily and cheaply to reduce risk by investors with significant equity exposure. Investors such as myself should have the right to make our own decisions about reducing risk without the need to sell our stock positions. We should not be forced to take a test to retain this right, although i have no objection to net worth requirements.
I should be able to choose the public investments that are right for you and your family. Public investments should be available to all of the public, not just the privileged.
As an RIA for over two decades, I want the ability to use whatever tactical strategies I see fit for my clients as well as myself. I have used inverse funds within hedging strategies since the 1990s to no ill effect for my clients. They are extremely useful tools for hedging against large market losses, especially within Long/Short strategies. With the advent of cannabis, crypto, day-traders, and zero commission trading, there will be even more risky trades and investments being done by retail investors.