Imagine that you are a talented, smart and, most importantly, hardworking person. Perhaps even financially savvy: you read books about Buffett, follow a few investor bloggers, and even know the difference between a bond and a stock. In short, you’re a winner, ready to take everything life has to offer.
But then the state gently pats you on the shoulder and says: “Hey there, buddy, stop-stop! You’re too poor to invest in interesting things. Why don’t you just put your money in the bank at 4% and don’t make a fuss.” Sound familiar? Welcome to the world of restrictions for “non-qualified investors.”
What is actually happening? In many countries (USA, Russia, EU), a roughly similar scheme is in place: authorities divide investors into two castes — “quals” (those with plenty of money and the right papers) and “non-quals” (everyone else). Quals can invest anywhere: venture startups, hedge funds, IPOs, cryptocurrencies, complex derivatives — in short, any juicy opportunities with the potential for hundreds of percent growth.
But for an ordinary person, even if their IQ is higher than that of many millionaires, the road there is closed. True, in some cases, people have found workarounds through cryptocurrency: thanks to it, one can invest in startups and projects that would otherwise be completely inaccessible due to formal restrictions. The state is protecting us, mere mortals, from risks. Like, just in case — what if we lose our money and become even poorer?
But here is the paradox: casinos and betting shops — please, go ahead. Lotteries — always welcome! Loans at 25% per annum — “dear, come in, we’re glad to see you!”. But a startup by your acquaintance — no way, too risky, you’re not a millionaire to invest in such things! Ironic, isn’t it?
Such restrictions lead to a banal financial apartheid: the rich gain access to the juiciest investments and become even richer, while the middle class and the poor are forced to settle for crumbs — deposits and low-yield bonds. In the USA, for example, only 13% of households fall into the category of accredited investors. And it is they who get access to venture deals that turn 1,000 dollars into a million. Meanwhile, the average John Smith has to sadly watch the success of others, settling for boring S&P 500 ETFs.
Russia has gone even further: “non-quals” are completely forbidden from investing in foreign stocks. Tesla, Apple, Nvidia? Forget it! Your lot is Gazprom shares, a deposit with a yield below inflation, and a state pension. In short, stay quiet and dream of a salary increase at the factory. And Europe? There, regulators have decided that people “do not have a legitimate need” to invest in crypto-derivatives or use high leverage. This is like telling a person: “You do not have a legitimate need to earn more.” Thank you, so very caring!
Who benefits from this? Imagine: if a person earns a lot from investments, they become financially independent. They are no longer afraid of the boss, layoffs, or a crisis. They gain money, time, and the most terrifying thing for the authorities — the ability to think about politics. It is not in the interests of the authorities for the middle class to get rich quickly and stop depending on a salary and the state. After all, as long as you slave away from morning till night at a job you hate, paying off loans and trying to make ends meet, you certainly have no time for rallies and protests. No time to wonder who up there is stealing the budget — you have to feed the family and pay the mortgage! Thus, investment restrictions play into the hands not only of the super-rich (who maintain exclusive investment opportunities) but also of states, for whom it is easier to manage a tired and economically dependent population.
What to do and how to live on? The problem is not that investing is dangerous. The problem is that the state has decided that you are a child, incapable of making a decision about your own money. If a new Apple or Google appears tomorrow, you will be the last to know, when the shares have already hit the exchange and grown dozens of times. Until then, the “quals” will skim the cream. It is time to return the right to take risks!
