February 24, 2020
It has come to my attention that SEC Proposed Rule #S7-24-15 may prevent experienced retail investors like myself from accessing leveraged or inverse funds.
It is hard to conceive why the SEC would want to limit retail investors access to needed tools to protect or enhance strategies such investors may employ.
For example, using a broad equity index 3x leveraged fund to gain 100% market exposure with only 33% of portfolio capital, while investing the rest for income, thereby getting more income from a portfolio, without losing growth, than if one was to invest 100% in a non-leveraged broad equity index.
Limiting retail investors options to run money as they see fit, or putting obstacles in the way to their control of their own financial well being, is a terrible idea, and will make it even harder for the little guy to get ahead.
Or maybe the SEC thinks that retail investors should not have products that are easy to use, when compared to hedging in the futures markets, for example.
The SEC should make sure that retail investors are fully informed, but then it should back off from making itself the master of the retail investors universe, and instead, enable the retail investor, not hogtie it.