March 4, 2020
It has come to my attention that the SEC has an ill advised proposal to limit the availability of leveraged and inverse funds.
Please be advised that I am totally opposed to this reckless proposal. I am quite capable to understand the risks of calls and puts, just as I am well capable of understanding the risks of leveraged and inverse funds.
I enjoy the simplicity and ease of the enhanced returns of the leveraged funds as well as the optional ability to use inverse funds to protect profits.
Furthermore, I don't understand the SEC's desire to limit the free market of investment securities when there isn't a problem.
Implementing such a draconian regulation would just create an even greater concern by driving investors to high beta stocks or call/put options that in my opinion have greater risks than the simple to understand efficient leverage and inverse funds.