March 10, 2020
The following are my comments regarding the proposed changes or regulations on by the SEC on leveraged and inverse ETFs.
I was raised in a household where my father was a business executive and trader in the commodities markets. He also invested in the stock market as a means to reach his financial goals and retirement. I gained my first understanding of trading and markets under my father's guidance.
I bought my first stock after college in my early 20's and have been active in the markets ever since. I am now almost 60 years old. I am experienced and understand thoroughly the risks inherent in the markets and in all kinds of ETFs. I have traded in stocks, ETFs, Leveraged ETFs, Inverse ETFs and commodities throughout my life on a daily basis.
The introduction of ETFs, Leveraged ETFs and Inverse ETFs was genius. It was what the world needed to better diversify ones portfolio and manage risk. Inverse ETFs are totally necessary to hedge my portfolio against loss. Leveraged ETFs allow me to take positions with less upfront cash outlay when there is potential risks in the market and they enhance portfolio performance when the markets are less volatile. Markets go up and they go down. Without Inverse ETFs it takes away the option to protect my investments against loss and it would completely shut down my ability to continue to grow my portfolio when markets go down.
Any change or regulation on the status quo is just wrong. It hurts me the investor and the free flow of markets. Leave it alone.