March 24, 2020
Hi, I am an individual investor who wanted to offer some comments on buying leveraged and inverse funds. I believe that inverse funds (1 to 1) provide a valuable service in hedging risk on portfolios. I believe in the 1 to 1 use of leverage as it correlates with the benchmark for more than 1 day. I use these on my portfolios and it allows me to hedge my portfolios without seeking off big positions to raise cash to reduce the risk of my portfolios. I am not a big believer in 2 or 3 or 4 to 1 use of leverage. I believe that these are creating unnecessary volatility which is forcing people to leave the stock market. I also believe that most people are probably losing a lot of money on these. Please continue with the unleveraged inverse funds as I believe they provide a great service for the individual investor. Have a great day
Steven Beatty