@RepCasten this is a long tweet but hopefully, you get through it. We just finished the recent @FinancialTimes article covering the suicide of Alex Kearns where you are quoted saying, “We need to do something to make sure these kinds of things don’t happen.”
We completely agree. What we hope, however, is that you are not proposing legislation to restrict retail investors from entering the market, but rather, find a better alternative to get them exposure to markets in a better way.
May we suggest that instead of legislating away their ability to gain access to the market via options or fractional share trading, we legislate away the account minimums charged by institutional active managers (not ETF or mutual fund managers), to allow the same type of
professional-level service and access to the markets to the 99% that has only been accessible to those with at least $100k+ account minimums. One idea is to legislate institutional managers to set aside SPVs for each new fund they launch in order to aggregate retail investors
who want exposure to guys like @RayDalio and @BillAckman but have never actually had access because they’d have to mortgage the house to get in. Once the SPV hits an aggregated minimum, say $500k, the fund manages it as it would any other client.
Retail gets access to the 1% money managers, and money managers fill out their fund with some semblance of social responsibility. Win win?
So instead of legislating away the rights of people trying to participate in the upside of free @federalreserve money, we instead provide them access to a better alternative. We may be incredibly naïve on this, but shouldn’t we at least start the conversation?
