May. 11, 2020
Comment on SEC Proposed Rule #S7-24-15: 1. I understand the risk of L&I Funds, and limit such Funds to 5-10% of my portfolio. 2. The risks of L&I Funds include time decay and contango. It can lose value quickly unless the underlying index or security is trending in one direction strongly. 3. I log in my brokerage account every week to monitor my investment, but I try not to log in too often so as to stay cool and not get carried away by the daily fluctuation. Also, I use charts from other websites that does not need to log into my account. 4. I don't believe my brokerage firm should make decision for me whether I am sufficiently "capable" to access risk, or to disqualify you from trading L&I Funds or any other publicly offered investment. Many investors will lose money, of course, and they will learn lessons while investing. It is just the way it is. Many other financial products are also very risky, such as FX, warranty, options, futures, junior mining stocks etc. When propose regulation to limit L&I Funds, I think it's only to be fair to put all those risky products in perspective. 5. My brokerage firm asks me to update document annually to indicate my level of risk tolerance and understanding. I had my lessons in the past and I always remind myself the risks in the market, including but not limited to L&I Funds. 6. I think the prior use of L&I Funds definitely helps, especially when the underlying index went through every different stage of economic cycles.