Never miss an update

Nike Nike Air Vapormax Fk Fk Moc 2 Black/volt Size Size US 12.5 In Hand 3d5d47f




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
Product Line: Nike Air
Style: Running Shoes Brand: Nike
Color: Black US Shoe Size (Men's): 12.5
UPC: Does not apply
Never miss an update

Nike Nike Air Vapormax Fk Fk Moc 2 Black/volt Size Size US 12.5 In Hand 3d5d47f - blurrypron.com

    Nike Nike Air Vapormax Fk Fk Moc 2 Black/volt Size Size US 12.5 In Hand 3d5d47f
    Nike Nike Air Vapormax Fk Fk Moc 2 Black/volt Size Size US 12.5 In Hand 3d5d47f
    Air Jordan Retro 5 V White Grape Size 9 Brand New DS with recieptNike Air Max 93 - SIZE 10 - 306551-107 Black Dusty Cactus Retro OG Menthol QS , Air Jordan 10 X Retro "Cool Grey" Basketball shoes men size 9.5 Yeezy NMDAdidas Yung Freeze Dragon Ball Z Sz 9.5 USA FREE SHIPPING , New Air Jordan 13 Retro Low Black Metallic Gold Red White Size 10 (310810-027) , Nike Air Kobe 9 IX Elite Detail Grey Black Fog High 630847-003 Sz 8.5 Details , adidas originals Micropacer Gore Tex SAMPLE 2010 gtx goretex runner jogger zx , Nike Air Jordan 28 XX8 OAK HILL ACADEMY Blk Wht Rd Camo 11 555109 011 Bred BullsNike X Supreme Air Humara '17 Blue Lagoon Size 9.5 NIBJohn Elliott Sail Grey Nike Vandal High NEW IN BOX White size 7 , US size 10.5 bait x diadora astro boy intrepid US menDS Nike KD VII 7 EXT Floral QS 726438-400 Sz 10 11 12 aunt pearl , new balance 998 J Crew Independence Day sz 9.5 Great Condition With Original Box , RARE SZ 11.5 Mens Nike Air 180 "Easter" 314187 131 Air Max 95 Neon 90 97 98 93 1 , Nike Air Jordan XXX1 31 Banned sz size 13adidas Crazy Explosive 2017 Primeknit PK White 8 Boost Basketball Shoes BY4469 , Nike Supreme Air Humara 2017 Size 8 Pink Shoes, Perfect!! , Nike Air Jordan 11 XI Retro Low RE2PECT Derek Jeter Respect size 11New in box DS Nike Zoom Kobe 7 VII Supreme Inline Concord 488244-100 Size 7.5AIR JORDAN 11 XI Retro Low WHITE/METALLIC GOLD NEW DS Men Sz 12 FREE SHIP!Nike Zoom Hyperdunk Pau Gasol Spain PE Size 10.5 100% Authentic2005 Nike Air Jordan XX 20 Black Stealth Red DS Sz 9.5 Laser 310455 , NIKE AIR JORDAN 2 II EUROPE EXCLUSIVE Q54 QUAI 54 US SIZE 7 11 14 15/ 866035-001DSQUARED2 DSQUARED 44 ITALY MEN SNEAKERS MARGIELAAir Jordan 13 Retro CP PE -CHOOSE SIZE- 823902-015 CP3 Chris Paul Blue XIII Bred , DS Nike Air Foamposite Pro PRM Sz 12 OG Retro OVO YEEZY Foams Supreme , DS NIKE AIR JORDAN 14 XIV RETRO Thunder black/yellow-white 487471-070 sz 9.5 , Men's Nike Air Jordan 4 Retro LS Size 18 (314254 003) , MBT - GT 18 Men's Running Shoes Black
    Nike Nike Air Vapormax Fk Fk Moc 2 Black/volt Size Size US 12.5 In Hand 3d5d47f - blurrypron.com>Nike Nike Air Vapormax Fk Fk Moc 2 Black/volt Size Size US 12.5 In Hand 3d5d47f - blurrypron.com
    Columbia Women's Irrigon Trail Outdry Xtrm Hiking - Choose SZ/color , STUART WEITZMAN 'Grandiose' Suede Ankle Boots - Size 4.5 - MSRP $535FRYE Womens Brown Leather Knee High Boots Sz 7 B NEW! 218182New Beltrami Marilu Womens Shoes Casual Sandals HeeledNEW Pleaser 7” Heel Adore Rhinestone Embelished Platform Sandal, Wild Secrets , Nine West 25029466 Womens Seriously Fabric Ballet Flat- Choose SZ/Color. , Womens Real Leather Rabbit Fur Flat Slippers Slip on Mulrs Embroidered Shoes szRebecca Minkoff HF17FMDS81-301 Military Leather Pocket Satchel, Pink , Occident Women Round Toe Embroidery Rhinestone Chunky Heels Ankle Shoes Chz8PLEASER Sexy 6 1/4" Heel Metal Stiletto Black Pumps Shoes Heels w/ Ankle Strap , ZARA BLACK COURT SHOES SIZE UK4 UK5 , NEW Authentic Prada Sandal (black) size 37 , Men/Women Holster Glitter Jetsetter Sneaker Pewter High grade a wide range of products King of the crowd , PUMA Suede Classic Unisex Trainers Deep Teal Green-White Mens 7 Womens 9 , OG 2005 Nike Air Jordan Dub Zero Black Laser Blue Size 12 311046 102 XI XX XIXNike Air Max 120 OG Hyper Orange Yellow Athletic Shoes 819857-100 MEN'S SIZE 8.5Nike LeBron XI 11 Eleven Low sz 10.5 DS NEW NIB Easter white green rare what the , Nike Kobe X 10 Elite Low Flyknit iD Black-lime SZ 10 ( 802817-001 ) , EXOTICA Frenkel Carpincho Cognac Caramel Suede Argentina Bespoke Custom ChukkaBritish Mens Leather Loafer Slip On Summer Casual Tassel Low Top Pumps ShoesClarks Originals Wallabee Sand Tan Suede Leather Hi Moc Toe Boot Shoe 9.5 DMen's Pointy Toe Patent Leather Dress Formal Business Hidden Wedge Shoes Plus Sz$262 New PIRELLI John Rex-20 Black Suede Athletic Shoes Fashion Sneakers 9 D NIB , NEW BALANCE Women's runniing white athletic shoes WX408PK Sz10 Excellent ConditWOMENS ADIDAS ORIGINALS NMD R2 SZ 11 ASH PINK CRYSTAL WHITE MULTI COLOR CQ2007adidas Originals NMD R2 Women's Linen/Linen BA7260 , Etienne Aigner Womens E-Becca Knee High Riding Boots Leather Size 7 1/2M Black , Marc Fisher Women's Oshana Fashion Boot - Choose SZ/ColorNWT Steve Madden Emotions Over the Knee Boots 7.5 Ret. $99Sanuk Women's Savvy Anna Chukka Boot,Zebra,5 M US ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Nike Nike Air Vapormax Fk Fk Moc 2 Black/volt Size Size US 12.5 In Hand 3d5d47f - 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 Nike Air Vapormax Fk Fk Moc 2 Black/volt Size Size US 12.5 In Hand 3d5d47f - 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 Nike Air Vapormax Fk Fk Moc 2 Black/volt Size Size US 12.5 In Hand 3d5d47f
    Athletic Shoes
    >
    ;