April 17, 2020
The SEC proposal limiting or eliminating access to inverse and leveraged funds is unnecessary and harmful to individual investors. The people using these funds are highly educated successful people that understand the risks. It is their money and they want to be responsible for their own investments. A person could buy TSLA and HMNY for their retirement accounts. Have you looked at their charts? I use the inverse and leverage funds to protect other less liquid assets. Yes I use retirement accounts for tax reasons. It is important to have access especially with recent volatility. I own a business deemed essential by the government. I have pensions, land, homes and businesses that I use inverse funds to hedge against. It was very comforting to have some green accounts during the recent downturns. It gave me confidence to keep my business fully staffed and inventory stocked as necessary. The major stress I have had is the thought the government would take these funds away. We have to sign an acknowledgement periodically about the risks. Why require more? I am very concerned. Will I be able to keep funds I am currently invested? Will I be forced out? Will I have adequate time to sell other illiquid assets prior to losing my hedge? Will I have to cut staff and business inventory because I am no longer allowed to hedge for down markets? Your decisions affect a lot of people. Please give it a lot of thought. Please do not further harm the individual investor by limiting options. The odds are already against us with all the advantages and government bailouts the big firms enjoy.