Never miss an update

Gentleman/Lady Saucony Guide ISO Guide discount Women's price Slate/Peach 104155 Special purchase discount Fair price 859d6e7




Item specifics

Condition:
New with box: A brand-new, unused, and unworn item (including handmade items) in the original packaging (such as ... Read moreabout the condition
Brand: Saucony
Style: 104155 Color: Slate/Peach
Never miss an update

Gentleman/Lady Saucony Guide ISO Guide discount Women's price Slate/Peach 104155 Special purchase discount Fair price 859d6e7 - blurrypron.com

    Gentleman/Lady Saucony Guide ISO Guide discount Women's price Slate/Peach 104155 Special purchase discount Fair price 859d6e7
    Gentleman/Lady Saucony Guide ISO Guide discount Women's price Slate/Peach 104155 Special purchase discount Fair price 859d6e7
    Man/Woman Klogs Women's Naples Clog Castle Fg Reputation first Let our products go to the world British temperament , Nike WMNS Free RN Flyknit 2018 [942839-002] Women Running Shoes Black/AnthraciteNew Balance Women's 857v2 Training Shoe White/Light Blueadidas Originals NMD R1 - Womens Grey/Gold Metallic/Pyrite Metallica Pack B37651Asics Gel-Nimbus 18 Peach Melba/Hot Pink/Guava Expert Running Shoes T650N-7620Nike Air Huarache Run Ultra Light Orewood Brown/Brown/Blur/Black/White 59516102adidas Pureboost X TR 3.0 Women's Core Black/Carbon CG3528Sam Edelman Women's Yaro Ankle Strap Sandal Jute Glam Mesh , 1802 adidas Originals Prophere Women's Training Running Shoes AC8509Lucky Brand Women's Baley Bootie Bijou Suede Ankle Boots , Sam Edelman Women's Loraine Horsebit Loafer Light Pink Leather Flats , Sam Edelman Yaro Ankle Strap Sandal Bright Gold Distressed Metallic LeatherNike Air Max 90 Ultra 2.0 Flyknit White/Armory Blue/Glacier Blue/Green 81109105Women's Reebok Fusion Flexweave Training Tin Grey/Shark/Spirit White CN2858 GRYHoka One One BONDI6 - NEW! Women's Running Shoesadidas Originals NMD_R1 W BOOST Gum Womens Lifestyle Shoes Sneakers Pick 1 , Nike Air Zoom Pegasus 35 Running Elemental Rose/Barely Rose/Vintage 942855 007David Tate Women's Cactus Bootie Brown Lambskin Ankle Boots , Devious Women's Fabulous 3035 Silver Crinkle Patent/Glitter , Nike Air Huarache City Black/Dark Grey/Storm Pink/White Camo Pack R5387001 , Gentlemen/Ladies OluKai Women's Waipahe Bootie Fox/Fox Sneakers Ideal gift for all occasions Medium cost Exquisite processing , Alegria by PG Lite Women's Debra Sugar SkullsNike Air Max 1 Ultra 2.0 SI Cool Grey/Black/White/Total Crimson/Lava 81103001NIKE AIR MAX 1 LE GS GAMMA BLUE ORANGE US 4.5Y PINK 90 HUARACHE HYPER , Rockport Women's Cobb Hill Gabby Gladiator Bootie Black Full Grain LeatherPleaser Women's Beyond 3028 Red Stretch Patent/Red , Durango Boot Women's RD3471 10" Flirt Brown/Light BlueDansko Women's Sophie Sandal Black Full Grain , Nike Air Max Thea Ultra Flyknit Pure Platinum/Pure Platinum/White 81175002
    Gentleman/Lady Saucony Guide ISO Guide discount Women's price Slate/Peach 104155 Special purchase discount Fair price 859d6e7 - blurrypron.com>Gentleman/Lady Saucony Guide ISO Guide discount Women's price Slate/Peach 104155 Special purchase discount Fair price 859d6e7 - blurrypron.com
    Lucky Brand Women's Lakmeh Ankle Bootie - Choose SZ/Color , New SAINT LAURENT Paris FUR Lined Leather SNOW Boots Hi-Top Sneakers 38.5 US-8.5 , Frye Ladies Veronica Short Camel Boot 3476509-CAM , DSQUARED2 MEN'S SHOES LEATHER TRAINERS SNEAKERS NEW 551 WHITE 1F9Mens Merrell Boots Telluride Mid The Style ~ K , ZARA NEW TRIMMED BALLERINAS SLIP ON BUCKLE STRAP NUDE POINTED TOE SIZE , ECCO Angel Ballerina (239033) - NIB - Free ShippingNew Rose Petals Womens Lizzy Black/Sparkle Pumps Size 8 (C,D,W)Aldo Womens thylia Closed Toe Ankle Wrap Classic Pumps Black Leather Size 8.0Chinese Laundry Tatiana Open Toe Heels Women's Tan - Size 7.5MOT-CLe 696b Black Suede Round Toe Block Studded Heel Pumps 36.5 / US 6.5Man/Woman KAANAS Women's Maragogi Flower Cutwork Sandal Various goods Impeccable Brand feast , DC Men's Manteca TX SE Skate Shoe - Choose SZ/Color , Nike Air Vapor Advantage Men's Tennis Shoes White Blue Size 10 599359-044 , 2006 Nike Air Force 1 HALLOWEEN WHT/BLK/DP ORNG WMNS SZ 6.5 307109-103 CO.jp , NIKE AIR MAX 90 ESSENTIAL MEN'S WHITE/YELLOW-BLUE AJ1285 101NIKE 804609-200 MEN'S NIKE AIR FORCE 1 MID '07Nike Air Jordan Jumpman Team II Gym Red/ Black 819175-602 Men's Size 13 , Adidas Originals Campus [B37821] Men Casual Shoes Black/Trace Cargo , Reebok Men's Crossfit Nano 7.0 Cross Trainer, - Choose SZ/ColorAdidas Originals Jeremy Scott ZX Flux Tech Psychedelic Shoes Size 6 us S77841Kenneth Cole REACTION Men's News Loafer - Choose SZ/color , New Merrell J09652 Bare Access Black Metallic Lilac Women's Running Shoes 10 USNew Balance Women's Fresh Foam Beacon Running Sneaker Air/Summer Sky/White , OluKai Eleu Trainer - Women's Dark Shadow/Deep Red 9NIKE Lab x SACAI White & Navy Blue Womens Dunk Lux Sneakers Shoes Sz 9 NIB NEW , Bandolino Womens Black Leather Knee High Boots Size 8.5M Walwyn Full Zip BuckleRetro Womens Vogue Embroidery Knee High Boots Black Zip Low Heel Boots Lady HotGentleman/Lady Aldo Womens Cathrina wholesale New style Breathable shoesSkechers Performance Womens Go Trail 2 Grip Comfort Hiking Outdoor Hi Top Shoes
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Gentleman/Lady Saucony Guide ISO Guide discount Women's price Slate/Peach 104155 Special purchase discount Fair price 859d6e7 - blurrypron.com

    There’s no doubt that the last 2 years has seen the coming of age of ETFs. With what was once an unknown type of investment quickly becoming a $30b industry in Australia ($3 trillion globally). However, as ETFs have moved from the unknown to the flavour of the month, an increasing number of commentators have called on the risks ETF investors face, with some even stating that ETFs will be the source of the next market crash. Today we take a look at some of the claims as to why some believe there are so many risks associated with ETFs.

    Claim 1: ETFS are blindly pushing up stock prices

    Many have written about share markets being at record highs. In an interview with the AFR, Wilson Asset Management chief Geoff Wilson discussed his portfolios’ current high weightings to cash due to concerns of market over-valuations. 

    US based fund manager FPA capital called ETFs “Weapons of Mass Destruction”and stated “The flood of money into passive products is making stock prices move in lockstep and creating markets increasingly divorced from underlying fundamentals”. The argument they make is as ETFs blindly invest in stocks in their chosen index and ignore the underlying fundamentals of these companies. This causes these companies prices to be bid up to prices that do not support their fundamentals (ie a bubble), and eventually history repeats, the bubble bursts and markets crash.

    What do we think?

    ETFs account for around 10% of US stocks’ market value and less than 1% in Australia. In the US at least this is not an immaterial amount. However, the active managers whom ETFs have taken business from generally have mandates which force them to invest a certain percentage in the market. As a result, active managers have always been investing in expensive markets and pushing up prices. Additionally, what is currently called by many analysis as expensive equity markets could also be attributed to global record low interest rates rather than an uptick in passive investing. In saying that, since the last major market crash (the 2008 GFC), the proportion of total assets in ETFs are considerably higher and continual growth of passive investing must be considered as a possible cause of markets becoming expensive.

    Recently we’ve seen Vaneck reweight their huge Junior Gold Miner’s ETF as they approached 20% limits in some of their smaller holdings. This meant selling out of these small gold miners which saw large falls in some of these shares (some of which was blamed on hedge funds looking to capitalise on the opportunity). This is a great example of the influence that ETFs can have, albeit this is at the small end of the market.

    Claim 2: ETFs will sell on mass and compound market falls

    One of the known weaknesses of a managed fund structure is the ability for investors to fairly easily redeem their funds, meaning at times of market falls, when a fund manager may find the best investment opportunities, the investors in the fund are panicking and redeeming their investments, meaning the fund manager becomes a forced seller rather than a buyer. This was one of the reasons Forager decided to turn their Australian Share Fund (FOR) into a Listed Investment Trust, where the pool of capital for them to invest was guaranteed.

    The one thing stopping simple redemption of managed funds during market crashes is another one of its weaknesses, which is managed funds are not simple to trade, and require the investor to apply to the fund to redeem units. This can involve filling out paper forms, and an apathetic investor may simply not be bothered.

    What do we think?

    One of the greatest advantages of ETFs is also one of its weaknesses when it comes to the above, with ETFs able to be traded on the ASX, a panicked investor simply has to log into their online brokerage account and hit the sell button. If a buyer does not exist on the other side of the trade, the ETF issuer is forced to then sell the underlying holdings which could very well begin a contagion effect.

    However, we come back to the size of the ETF market, at around 1% of the Australian market and 10% of the US market. Investors selling underlying stocks that they own through their broker will have the exact same impact as the reasonably small proportion of ETFs. We believe the actual impact of this event would be not materially higher than what currently exists.

    Claim 3: ETFS with low liquidity will be hard to sell if markets fall

    Peter Switzer recently spoke about a client who had received advice that an ETF with low liquidity would be difficult to sell if markets fall. The argument being that without a liquid market the seller would be unable to find a buyer on the other side of the trade and would need to sell at a significant discount.

    What do we think?

    One of the somewhat unknown components of ETFs is the role of the market maker. Essentially the market maker’s role is to provide liquidity to an ETF, so that if there is not an existing ETF unit on the other side of an ETF trade, the market maker must create an ETF unit for a buyer, or absorb an ETF unit for a seller. It is then the ETF issuer's role to buy or sell the underlying assets that the ETF holds. This means that regardless of an ETF’s liquidity, a market maker will always exist to buy an ETF off an investor even if the markets in free fall.

    However, there is a caveat to the above. Market makers make a profit by charging a spread between the buy price and the sell price of an ETF. The spread becomes the market maker’s profit margin. In a free falling market it may be difficult for the market maker to price the underlying investments forcing them to create a huge spread between the buy and sell price to protect their margins. This was seen in the 2015 Dow Jones ‘Flash Crash’, where some ETFs dropped 30% when the market makers were unable to price the underlying securities.

    Gentleman/Lady Saucony Guide ISO Guide discount Women's price Slate/Peach 104155 Special purchase discount Fair price 859d6e7 - blurrypron.com

    Finally, an ETF is only ever as liquid as its underlying holdings. ETFs which invest in illiquid investments may have great liquidity, but if the underlying investments do not, this will likely be reflected in falls in both the underlying holdings and the ETF during market falls. This may be more likely to play out at the small cap end of the sharemarket and within unlisted asset classes.

    Claim 4: ‘Exotic’ ETFs are higher risk

    In a recent RBA publication, economist Michelle Cunningham discussed the risks faced with some of the more exotic ETFs, those that are classed as ‘synthetic’ ETFs, meaning the ETF issuer does not hold the underlying investments, rather they rely on a counterparty to pay the return. These ETFs are generally referred to as ‘Synthetic’ or ‘Hedge fund’ in their title. Cunningham raised the risk that the counterparty may default on their obligation, so an additional level of risk exists for the investor.

    What do we think?

    We agree with Cunningham’s analysis, an additional level of risk certainly exists with these ETF structures, however in many cases this is the only way to access to investment strategy that the ETF provides. Nevertheless, investors should be aware of the additional risks that exist.

    Conclusion

    There’s plenty of arguments in both camps about ETFs role in future market crashes. There’s no doubt the world has moved into uncharted territory with the rise of passive investing & ETFs in particular. We do believe, however, that some of the risks are overblow. Nevertheless, investors should be aware of these risks in order to make informed investing decisions. What do you think?

     

    Previous Article

    2017 Financial Year ETF and LIC Performance Table

    Next Article

    New Fixed Interest ETFs expand options for investors

    Leave a Reply
    Find a Fund
    Gentleman/Lady Saucony Guide ISO Guide discount Women's price Slate/Peach 104155 Special purchase discount Fair price 859d6e7
    Athletic Shoes
    >
    ;