Never miss an update

Nike Air Zoom Pegasus 34 Pure Platinum Pure mogochinese-29999 Anthracite Men Pegasus Running Shoes 880555-010 3c7f2f1




Item specifics

Condition:
New without tags: A brand-new, unused, and unworn item that is not in original retail packaging or may be missing ... Read moreabout the condition
Authenticity: 100% Authentic Guaranteed
Colour: Grey SizeScale: Us Size
Material: Synthetic Shoe Type: Running, Cross Training
MPN: 880555010 Style: Running, Cross Training
Width: Medium Brand: Nike
Never miss an update

Nike Air Zoom Pegasus 34 Pure Platinum Pure mogochinese-29999 Anthracite Men Pegasus Running Shoes 880555-010 3c7f2f1 - blurrypron.com

    Nike Air Zoom Pegasus 34 Pure Platinum Pure mogochinese-29999 Anthracite Men Pegasus Running Shoes 880555-010 3c7f2f1
    Nike Air Zoom Pegasus 34 Pure Platinum Pure mogochinese-29999 Anthracite Men Pegasus Running Shoes 880555-010 3c7f2f1
    MENS UNDER ARMOUR SPEEDFORM SLINGRIDE MEN'S SNEAKERS/TRAINING/RUNNING SHOESadidas Powerlift.3.1 Navy Red Strap Men Weightlifting Cross Training Shoe AC7475Nike Air Zoom Pegasus 35 [942851-001] Men Running Shoes Black/White-GunsmokeMen's/Women's Nike epic react flyknit Attractive and durable Fast delivery wonderful , Limited Edition X New Balance M577LEV Collectible box set Mens SneakersBrooks Addiction Walker Mens Walking Shoes (2E) (220) BROWN LEATHER | SAVE $$$Asics GEL-Kayano [T749N-4549] Men Running Shoes Blue/NavyNew Balance MS574NAP D Rose Red White Men Running Casual Shoes Sneaker MS574NAPDAsics Volley Elite FF [B701N-400] Men Volleyball Shoes Peacoat/WhiteMENS SAUCONY SPITFIRE 4 MEN'S RUNNERS/SNEAKERS/FITNESS/RUNNING SPIKES SHOES , Nike Metcon Repper DSW Size 10.5 US Black Men’s Cross Training ShoesReebok Insta Pump Fury SP Superman Classic 2015 Red/Black/Blue/Grey/White V66114Adidas NMD R1 x Bedwin Black US 8.5Adidas Ultra Boost ST M 'Mystery Blue' New (10US) pure NMD max 90 men training , Shoes Fila Urban 1010561 Ray Low Man Sneakers White Vintage 90's Heritage , Nike LeBron Soldier XII 12 SFG EP James Team Red Basketball Shoes AO4055-600MENS ADIDAS SUPERNOVA GLIDE 8 BOOST MEN'S RUNNING/SNEAKERS/FITNESS/RUNNERS SHOESNike Air Zoom Vomero 12 Grey Black Volt Men Running Shoes Sneakers 863762-002 , MENS BROOKS THE WIRE 4 MEN'S RUNNERS/FITNESS/TRAINING/RUNNING SHOES SPIKES , Nike Zoom Kobe VII Supreme Size 13 , AIR JORDAN 5 RETRO BG size 6 BRONZE OLYMPIC "DEAD STOCK"Nike Air Max Flair SE Men's Shoes Cargo/Khaki. BNIB Size 8 U.S (Genuine) , Brooks - Adrenaline GTS 18 Wide (D) - Ebony/Silver/Pink , Asics Gel-Nimbus 19 Peacoat Red Clay Men Running Shoes Trainers T700N-5806Asics Gel Kayano 22 Mens Durable Running Shoes (D) (4330 Asics Blue/Hot Orange)MENS NIKE ZOOM KEVIN DURANT KD IV 4 SHOE 8.5 GOLD MEDAL RARE BASKETBALL OLYMPICSadidas Originals Deerupt Runner Grey Footwear White Men Running Shoes CQ2627 , Adidas NMD R1 STLT PK Men's US11Nike Air Max Axis PREM [AA2148-002] Men Casual Shoes Camo Black/Mushroom ,
    Nike Air Zoom Pegasus 34 Pure Platinum Pure mogochinese-29999 Anthracite Men Pegasus Running Shoes 880555-010 3c7f2f1 - blurrypron.com>Nike Air Zoom Pegasus 34 Pure Platinum Pure mogochinese-29999 Anthracite Men Pegasus Running Shoes 880555-010 3c7f2f1 - blurrypron.com
    Jessica Simpson Women's Ciarah Winter Boot, Black, 5 M USMizuno Wave Rider 19 Mens Running Shoe (D) (311)MADE IN ENGLAND Dr Martens Brown Gaucho Flagstaff 5-Eyelet Shoes, Size , VINCE WOMENS SUEDE ESPADRILLE TRIM LOAFER SHOES NEW SIZE 7 ()New Authentic Burberry Nova Check Red Plaid Ballet Flats sz 39 fits 8.5 Orig$495 , Stuart Weitzman Women's Metro Slip-on Loafer - Choose SZ/Color , Women's SAS TriPad Comfort Black Leather Slide Wedge Sandal Sz. 8N MINTY!Amazon Red Headed Parrot Print Running Shoes For Women-Free ShippingNew FILA Drifter Stripe Slipper Flip Flop Slide Sip Limited Black US Size 4-10 , Men Athletic Style Chic Climbing Hiking Outdoor Shoes Casual Workers BreathableRETRO VTG NIKE AIR FLIGHT 89 MID SZ 8 (41) BASKETBALL , Nike Air Max Nostalgic Mens 916781-001 Wolf Grey White Running Shoes Size 7.5 , Man/Woman jordan spizike Midnight Size 11 durable a good reputation in the world Highly appreciated and widely trusted in and outHoka One One Men Athletic Shoes Size 10 Red White Gray Style F10014LNike Air Zoom Talaria 16 Volt Neon Sz 8 White Running Training Shoes 844695-700 , Adidas Swift Run PK Mens CG4126 White Grey One Primeknit Running Shoes Size 10.5Altra Mens Paradigm 4.0 Shoes AFM1848G-21 Gray/Red Size 9.5Men Leather Ankle Boots Strappy Motor Oxfords Leisure Outwear Work Shoes FashionFrye Men's James Lug Chukka Shoes Dark Brown 8 D , nordstrom shoes 11 men's cordovan leather slip on tassel - size 11 , Nunn Bush Mens Sabre Plain Toe Monk Strap (84713) , Skechers Sport Womens Flex Appeal 2.0 Top Story Sneaker- Pick SZ/Color. , NIKE WOMENS AIR HUARACHE RUN DARK GREY PURPLE TEAL WMNS sz 12.0 mens sz 10.5Reebok Classic Nylon Womens Lilac Nylon & Suede Trainers , Asics Gel-Nimbus 19 Running/Training Shoes ----Brand New in Box--Size 7Adidas Eqt Support Adv Womens Style : By9110 CBLACK,CBLACK,SUBGRN Size 8.5 , Vasque Womens Breeze 2.0 GTX Breathable Athletic Hiking Outdoor Mid Boots Size 9 , The North Face Womens Stormkat Brown Winter Boots 8.5 Medium (B,M) BHFO 7002 , Fly London 'Yip' Wedge Bootie Expresso Oiled Suede Sz 39EU/8-8.5US , Bottines & low boots à talons-ESSENTIEL ANTWERP-Taille 40 FR
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Nike Air Zoom Pegasus 34 Pure Platinum Pure mogochinese-29999 Anthracite Men Pegasus Running Shoes 880555-010 3c7f2f1 - 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.

    Nike Air Zoom Pegasus 34 Pure Platinum Pure mogochinese-29999 Anthracite Men Pegasus Running Shoes 880555-010 3c7f2f1 - 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
    Nike Air Zoom Pegasus 34 Pure Platinum Pure mogochinese-29999 Anthracite Men Pegasus Running Shoes 880555-010 3c7f2f1
    Athletic Shoes
    >
    ;