Never miss an update

NEW Diadora Mens Diadora Titan Titan Leather Diadora L/S 501.160354101 Mens Running SHOES Burgundy 8cbba50




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: diadora
Material: LEATHER & SUEDE Style: Running, Cross Trainers
Color: Burgundy
Never miss an update

NEW Diadora Mens Diadora Titan Titan Leather Diadora L/S 501.160354101 Mens Running SHOES Burgundy 8cbba50 - blurrypron.com

    NEW Diadora Mens Diadora Titan Titan Leather Diadora L/S 501.160354101 Mens Running SHOES Burgundy 8cbba50
    NEW Diadora Mens Diadora Titan Titan Leather Diadora L/S 501.160354101 Mens Running SHOES Burgundy 8cbba50
    Nike KD10 Kevin Durant 'Multicolor' Shoes - Men's Size 11 - BRAND NEW NEVER WORN , Asics Onitsuka Tiger Mexico 66 VIN Vintage Black Men Women Shoes D2J4L-9086Nike Kyrie 3 University Red Suede Basketball Shoes 852395-601 Size Men's 12 USNIB Men's Nike AIR MAX ZERO SE 918232 200 SHOES Velvet Brown Dusty Peach Cargo , Nike Air Max CB34 Grey Red White Size 11.5 New 88341966421214 Barkley Basketball2018 Nike Air Huarache Run 91 OG QS SZ 12 White Magenta Black Volt AH8049-101NIKE Air Max 95 Mens Sz 8.5 Shoes Wolf Gray Black 609048 088NEW SZ 11.5 MENS NIKE AIR MAX 1 FB PREMIUM QS MERCURIAL PACK SHOES $130 665874 , Nike Lunarepic Low Flyknit 2 Explorer White/Black/Bronze Oreo Mens 904742 100 , Nike Air Huarache 91 QS AH8049 101 OG 1991 Magenta Men , Nike Men JORDAN GALAXY Dark Grey White New Comfort Rare Stylish 820255-003 Sz 11 , Puma X Begins Trinomic XS850 love begins 359412-01 Limited sz 6NIKE ZOOM FLY SZ 12 BLACK ANTHRACITE WHITE 880848 001DS NIB MENS ADIDAS NMD_R1 NOMAD OLIVE B37620 RUNNER SZ 8.5 FREE SHIPNike Air Force 1 Mens 488298-086 Cool Grey Black Leather Low Shoes Size 11.5NIKE FREE TRAIN VIRTUE HUSTLE HART KEVIN DAY COOL GREY AH0857-002 SZ 15 TS0281 , Nike Air Max 270 Men’s Black/Total Orange/White All SIZES , NIKE KOBE BRYANT XI 11 PHILIPPINES NAVY BLUE METALLIC GOLD Size 18 [836183 447]NIKE FLYKNIT TRAINER QS NIGHT PURPLE BLACK AH8396 500 SZ 8-13 NEW RACER OLYMPICREEBOK VENTILATOR LXR LOW SNEAKERS MEN SHOES PURPLE/BLUE 1-158106 SIZE 8.5 NEWNike LeBron Soldier X 10 Orange University of Texas Shoes 856489-882 SIZE 15!!New Nike Zoom Turf Jet 97 QS OREGON DUCKS Black Yellow Strike 10 585387 002 UONike Air Max 1 LHM Los Primeros Mens Running Shoes Red White Size 7.5 , Kobe XI TB Promo Sz 13 100% Authentic Nike Retro 11 EM Gym Red 856485 661 , AIR JORDAN 11 RETRO XI MID TD CLEATS SZ 9.5 COOL GREY WHITE AO1561 003adidas Originals ZX Flux Weave Mens Trainers Shoes BlackAir Jordan 1 Retro High Nouveau BHM Black History Month Black Size 9.5 , NIKE AIR FORCE 1 LOW CAMO 3M REFLECTIVE SIZE 12 NEW IN BOX DEADSTOCK 718152 204Men/Women Adidas Ultra Boost Uncaged Size 12 Economical and practical Preferred material International big name
    NEW Diadora Mens Diadora Titan Titan Leather Diadora L/S 501.160354101 Mens Running SHOES Burgundy 8cbba50 - blurrypron.com>NEW Diadora Mens Diadora Titan Titan Leather Diadora L/S 501.160354101 Mens Running SHOES Burgundy 8cbba50 - blurrypron.com
    Women's shoes boots leather model QAIS Us size 3.5 to 12 , Pour La Victoire Womens FELA Closed Toe Ankle Fashion Boots , Gentleman/Lady La Redoute Collections Girls Leather Boots Many varieties product quality a wide variety of goodsPuma Suede Classic Low-Top Sneakers, Ribbon Red Black White, 5 UK , ECCO JAZZ WOMENS BLACK LEATHER CLOGS SLIDES SLIP ON SHOES US 8.5 NEW , BARE TRAPS HASTINGS WOMEN MARY JANE FLATS (7 M, LAVENDER) , Stuart Weitzman Zipzip Women Peeptones black - patent leatherIVANKA TRUMP Women's Kayden 4 Pump Red Patent Leather 8.5 US NEW SOLD OUT , BADGLEY MISCHKA $225.00 COCKTAIL BLACK ISADORA RINESTONE BROOCH HEELS SHOES 8NEW Fitflop NEOFLEX Toe-Post Sandals, Dusky Pink Mix, Women Size 9 , 100% AUTHENTIC NEW WOMEN FENDI DECOLETTE VERNICE SNAKE SKIN PUMPS/HEELS US 10.5 , Luz Da Lua Women's Multicolor Green Strappy Sandal Heels Size 40/9BChaco's Women's Size 6 Brown Green Strappy Sandals Hippie Boho Festival Shoes , DC Rebound High SE Women's Size 9.5 US Gold BMX Skate Shoes SneakersSize 8 Mens Nike Air Jordan IX Retro Golf Shoes red Black Red 833798 002 white , 845098-102 Jordan Men Jordan Horizon Low Shoe white gym red platinumNEW NikeZoom Jordan Tenacity Respect Jeter Mens Sz 8 Running Shoes AO1556-402ASICS GEL-Resolution 7 - Blue - MensJordan 6 Rings Bulls Mens 322992-012 Black White Red Basketball Shoes Size 9 , ADIDAS F/22 PRIMEKNIT CRYSTAL WHITE-BLACK-TRACE ORANGE CQ3025Air Jordan Retro 6 Premium "Motorsports" Size 12NEW G STAR RAW MEN'S LOW-TOP FASHION SNEAKERS GS53332377 GREY US 8 MSRP145 , NEW TOMMY HILFIGER MEN'S LEATHER PERFORATED SNEAKER by tommy jeans , Pointy Toe Mens Splice Formal Business Dress Shoe Buckle Slip on Leather Hot new , Nike Women's Air Zoom Pegasus 34 880560-015 Size: 7.5, 8.5 , Adidas Flb_runner W Womens CQ1969 TRASCA,White,TRASCA Womens Size 5BETSY NAVY SUEDE ANKLE BOOT V TOP TRIM 10cm PARTIAL HIDDEN WEDGE ON TREND STYLE , Roman Womens Chunky Low Heels Suede Square Toe High TOp Ankle Boots Shoes Chic , NIB: Women's Melissa Flocked Black Tall Rain Boot (MSRP $235) , NEW WOMENS COWBOY BOOTS BROWN SQUARE TOE 7 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NEW Diadora Mens Diadora Titan Titan Leather Diadora L/S 501.160354101 Mens Running SHOES Burgundy 8cbba50 - 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.

    NEW Diadora Mens Diadora Titan Titan Leather Diadora L/S 501.160354101 Mens Running SHOES Burgundy 8cbba50 - 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
    NEW Diadora Mens Diadora Titan Titan Leather Diadora L/S 501.160354101 Mens Running SHOES Burgundy 8cbba50
    Athletic Shoes
    >
    ;