Never miss an update

Nike Free RN Nike Motion FK Flyknit 2017 Running Shoes FK 880845-002 880845-002 Grey $150 Mens 11.5 cee6bb9




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: Nike
Color: Gray Style: Running, Cross Training
Euro Size: EUR 45,5 US Shoe Size (Men's): 11.5
Product Line: Flyknit Material: Synthetic
UPC: 887223410447
Never miss an update

Nike Free RN Nike Motion FK Flyknit 2017 Running Shoes FK 880845-002 880845-002 Grey $150 Mens 11.5 cee6bb9 - blurrypron.com

    Nike Free RN Nike Motion FK Flyknit 2017 Running Shoes FK 880845-002 880845-002 Grey $150 Mens 11.5 cee6bb9
    Nike Free RN Nike Motion FK Flyknit 2017 Running Shoes FK 880845-002 880845-002 Grey $150 Mens 11.5 cee6bb9
    NEW Adidas Swift Run M AC7165 Men's Black / Blue Lifestyle Fashion Running Shoes , Nike Shox Gravity Sequoia/Off White Men's Running Shoes All Sizes AR1999-300 New , Reebok Club C 85 JL Reebok x Curren$y Jet Life Primal Green BS7338 Mens Size 8Nike Air Huarache Run 91 OG ORIGINAL WHITE ROYAL BLUE PINK AH8049-100 sz 8 , Gentlemen/Ladies Nike Lebron Soldier 9 IX Freegum economic Affordable Acknowledgement feedbackNike Air Zoom Elite 9 Running Shoes Blue Jay Solar Red Size 14 ( 863769-403 ) , Adidas Mens Originals Deerupt Runner White/White/White CQ2625Adidas Energy BOOST Men's Size 13 Running Shoes Solar Yellow Black Grey BB3455 , Osiris South Bronx Shoes Black Gray White Size 9Nike Zoom Tallac Lite OG 844018-002 Pure Platinum Men’s Size 9.5 NWT , New Mens New Balance 574 White Gum Leather Trainers NB574BAA BNIB SneakersNike Lebron XIV 14 Low Basketball Mens Shoes WHite Ice 878636-101 , NIB MENS PUMA DRIFT CAT 5 CARBON BLACK F1 DRIVER MOTORSPORT FASHION SNEAKER SHOE , NIB! New in Box Nike Air Penny 2 II Size 8 Miami Heat Black Red Retro Hardaway , NIKE METCON DSX FLYKNIT 2 TRAINING SHOES WHITE BLACK VOLT MEN 9.5 NEW 924423-107 , Skechers Go Golf Fairway Golf Shoes 54516 Men's New - Choose Color & Size!New Reebok S. Carter BBall II Mid Jay Z Size 9 S Dots White/Team Dark Royal ShoeNike Mens Classic Cortez Nylon Lifestyle Shoes Wolf Grey White 807472-010 Sz 9.5 , Nike Air Huarache Drift Sequoia Green Bone Black Mens Size 12 , DS Nike Air Huarache BBALL 2012 SZ 10.5 488054 003 HU HOLI , NIKE FREE 4.0 FLYKNIT MEN [631053 403] , nike nikelab air footscape wvn nm DS sz.13US (47.5) neuves , Nike Mayfly Woven Independence Day Pack Men 833132-401 100%AUTHENTIC SIZE 9USOnitsuka Tiger California 78 Asics Tokidoki Size 12 City Running Shoes SneakersNike Shox Gravity Mens Running Training Shoes Reax Torch Navy AR1999 402Converse Chuck Taylor All Star Leather High Top Mono White Unisex Trainers. New , Nike Air Max 1 Ultra Moire, Custom Nike ID Size 10.5 Gym Red/Crimson. KING JAMES , New Balance Black Recovery V1 Transition Lacrosse Shoes Mens Size 12 , Nike Zoom Rival SD 4 RIO OC Throw Track Field 685135 999 RARE Men’s Sz 14
    Nike Free RN Nike Motion FK Flyknit 2017 Running Shoes FK 880845-002 880845-002 Grey $150 Mens 11.5 cee6bb9 - blurrypron.com>Nike Free RN Nike Motion FK Flyknit 2017 Running Shoes FK 880845-002 880845-002 Grey $150 Mens 11.5 cee6bb9 - blurrypron.com
    Pikolinos 913 8797 Andorra Brandy Womens Boots , NEW REISS WOMENS MERCURY KNITTED ANKLE BOOTS BLACK , NEW DANSKO WOMEN'S CHARLIE PERFORATED SNEAKER WHITE LEATHER 37 7 MEDIUM $120Planet Shoes Juicy Womens Mary Jane Comfort Shoe With Arch SupportMan's/Woman's Ladies Converse Snake Low Trainers Black Moderate price Preferred material Beautiful and charmingAQUAZZURA CHRISTY FLAT BLACK BNIB $795 EUR SIZE 38 / US 8 , $100 AUDREY BROOKE Iliana Pleated Heels ~ Brown Suede Size 10 ~ NEW , Cole Haan Womens Fair Haven Closed Toe Classic Pumps, stormcloud, Size 10.5Pleaser SKY-309 Women's Rose Gold Metallic Pu Chrome Platform Ankle Strap SandalYellow Box Womens Katie Sandal- Pick SZ/Color.Cole Haan Air Vineyard Slingback Sandals Heel Shoes Womens 7 Black NEW IN BOX , Reebok Men's Trainfusion Nine 3.0 Cross Trainer Grey #CN0974 Sz. 12 Medium , Man's/Woman's NIKE AIR JORDANS SIZE 13 Fine workmanship Beautiful Quality and consumer firstNew Mens New Balance 247 Mid Trainers - BlackNike Air Penny II "White/Royal" Athletic Basketball Sneakers 333886 100 Sz 10.5Le Coq Sportif Quartz Nylon Gum Trainers in Classic & Dress Blue & Vintage RedAdidas Men Originals Campus Casual Shoes Black White BZ0084 UK6.5-10.5 04' , Air Jordan 1 Hi Retro "Think 16 / Pass The Torch" - AQ7476 016Adidas Men Casual Shoes Campus Vulc Ii Black , Mens Tassels Suede Leather Loafers Slip on Belgian Dress Shoes Driving MoccasinsMen Gold Pointy Toe Slip On Leather Metal decor Loafers Dress Formal Shoes X725 , Haflnger Black Wool Loafers / Slip Ons Mens Size 11-11.5 / 44 , Dansko Harmony Grey Suede Casual shoe NIB $110Nike Air Max Sequent 2 Womens Running Shoes 852465 500 White Blue Sz 6.5/7.5/ 8Adidas Originals Superstar Velvet Icy Pink DB1056 WomenNike Air Huarache Leopard Print 725076-007 Black White Khaki Women Sizes New , New Balance Women's 1340v3 Running Shoe Grey/PiscesWOMENS BROOKS QW-K V3 LADIES RUNNING/SNEAKERS/FITNESS/TRAINING SPIKES SHOES , Dominatrix Plain Stretch Zipper Thigh High Stiletto Heel Boots Shoes Adult WomenPleaser 7" Heel Stretch Thigh Boot, Side Zip Women Boots Blk Str Pat/Blk
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Nike Free RN Nike Motion FK Flyknit 2017 Running Shoes FK 880845-002 880845-002 Grey $150 Mens 11.5 cee6bb9 - 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 Free RN Nike Motion FK Flyknit 2017 Running Shoes FK 880845-002 880845-002 Grey $150 Mens 11.5 cee6bb9 - 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 Free RN Nike Motion FK Flyknit 2017 Running Shoes FK 880845-002 880845-002 Grey $150 Mens 11.5 cee6bb9
    Athletic Shoes
    >
    ;