Never miss an update

Nike Cortez Kenny III DS III Size Red 11.5 Black White Gym Red BV0833 016 Kendrick Lamar DS 37fb9cd




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
Style: Athletic Sneakers
Color: Black Width: Medium (D, M)
Brand: Nike US Shoe Size (Men's): 11.5
UPC: 191888231331
Never miss an update

Nike Cortez Kenny III DS III Size Red 11.5 Black White Gym Red BV0833 016 Kendrick Lamar DS 37fb9cd - blurrypron.com

    Nike Cortez Kenny III DS III Size Red 11.5 Black White Gym Red BV0833 016 Kendrick Lamar DS 37fb9cd
    Nike Cortez Kenny III DS III Size Red 11.5 Black White Gym Red BV0833 016 Kendrick Lamar DS 37fb9cd
    Adidas Ultra boost Olive Green Black Gum Bottom Night Cargo 3.0 S80637 , Nike Air Force 1 High PSNY Black/Sail Men’s Sz 12 In Hand Ready To Ship , Nike Air Jordan Retro VIII 8 Take Flight Sequoia Black Orange UNDFTD 305381-305 , Mr/Ms nike air barkley posite max Every item described is available Preferred material Selling new productsNike Jordan Why Not Zero 1 Westbrook Mirror Image White Black SZ 9 (AA2510-104)Nike Air Jordan 2010 BASKETBALL BLACK CHARCOAL GREY FIRE RED BRED 387358-001 12Men's Brand New Lebron X EXT "Denim" QS Athletic Fashion Sneakers [597806 400]Men's Nike Free x Metcon Training Shoe - Black/Hyper Crimson/Light Carbon , NIke Air Jordan 11 Retro Low "University Blue" Style Size 8.5Adidas Yeezy Boost 350 V2 Triple White Men’s Size 12 Cream - IN HAND, ships FastAIR JORDAN Future Premium Size 11.5 Deadstock Glow Black III IV V IADIDAS NMD R1 PK SHOES ZEBRA BLACK SASHIKO BY3013 US MENS SZ 4-11 , NEW DS RARE KITH NIKE AIR MAESTRO 2 II HIGH PIPPEN RED BLACK EXCLUSIVE US 8.5 , Supreme x Vans Sid Pro - Dalmatian - Size 10.5Puma No Mas First Round List 2 New York Knicks NY sz 10 ONLY 48 PRS MADE!! , NIKE WAFFLE RACER '17 CDG BLACK COMME DES GARCONS AA9709-001 sz 13 RARE!Jordan 7 C&C Champagne Size 12 DS 725093 140 , Adidas NMD R1 PK Primeknit Tri Color Grey White BB2888 Mens Size 5.5 DS , WOEI X ASICS GEL LYTE 3 US 10 III VINTAGE NYLON APRICOT BLACK H7ZUQ-5990 , Adidas Consortium Pure boost Livestock Black Red Size 9.5 , Adidas Ultra Boost 3.0 Tech Rust Bronze Black Men's Size 8 Ultraboost LTD CG4086NEW lot 1 Pair of NIKE AIR JORDAN 6 VI Retro Black/Metallic Size 12 Chameleon , 5.5 BAIT x REEBOK QUESTION MID ICE COLD LIMITED 500Make Offers! Air Jordan 11 Xi low derek jeter Deadstock Size 9.5 , Men's Brand New Adidas NMD_R1 PK Packers Athletic Fashion Sneakers [BB5051] , Nike Air VaporMax Plus Grape White Fierce Purple Green 924453-101WORN ONCE Nike Air Jordan Retro 9 IX Johnny Kilroy Size 13 302370 012 Red Black , · PUMA x ROLAND RS-0 limited Edition Roland 808 Size US 9.5 Brand New ·Nike Air Max 97 White Wolf Grey Black 921826 101 Size 9.5 New in Box
    Nike Cortez Kenny III DS III Size Red 11.5 Black White Gym Red BV0833 016 Kendrick Lamar DS 37fb9cd - blurrypron.com>Nike Cortez Kenny III DS III Size Red 11.5 Black White Gym Red BV0833 016 Kendrick Lamar DS 37fb9cd - blurrypron.com
    FRYE Addie Double Zip Leather Sand Tan Boots Booties W 7 NEW $358 , U.S.POLO ASSN. Womens Twila Trainers, Beige Light Beige Libe, 6.5 UK , Nine West Youlo Ankle Strap Block Heel Sandals 705, Dark Natural, 8.5 US , New Django & Juliette Dols Pewter Womens Shoes Casual Sandals Heeled , New JCrew Black Patent Heels Size 6.5US Shoe Size Women New High Heel Pump Dress Comfort Casual Pointed Multi-ColorMARNI Sabbot Slip On Tassel Loafers 637, Black, 7 US / 37 EU , Sam Edelman Beige Patent Leather Sling Back Platform Shoes Size 7 40 US 9 NewBritish Womens Mules Slip On Leather Med Block Heels Casual Stitching Shoes NewSchutz Mulan Sandal Lightwood Rare Anthropologie Flat Tie Up Braided & stitchedWomen's Mizuno Wave Inspire 12 Running Shoes Women Sz 7- Retail $119.99ASICS GT Cool Men's Running Sneakers 11 (New) , PONY PLATON LOW CHEVRON MEN SHOES BLACK/DARK OLIVE 9752 SIZE 7.5 NEWVANS VAULT OG CLASSIC SLIP ON LX TARMAC 10 11 old skool fear of god van gogh redNike Air Max 1 Premium Tape Camo, Black / Cool Grey, Camouflage, Size 122014 Nike AIR MAX 95 SI 10 11 EUROPEAN FOOTLOCKER EXCLUSIVE BLACK COOL GREY am95YEEZY BOOST 350 V2 WHITE ADIDAS KANYE NEW WITH BOXMERRELL MENS DOWNTOWN MOC MERRELL STONE SIZE 13 , Mephisto Nilson Black Leather Penny Loafer Dress Shoes Men's US 10 , New Balance Women WRT580IK Sorbet pink coral WRT580IK , Women's Asics Kayano 25 Carbon Gray Running Shoes Size 8.5Ariat 10019890 Cruiser Aztec Print 3" Casual Slipper ShoesWomen Adidas B37450 Everyn Running shoes orange white SneakersASICS Women's Gel-Quantum 180 Tr Running Shoe Black/Silver/White  8.5B(M) US NewFashion Womens Short Faux Suede Boots Round Toe Platform Solid Smart Shoes WarmLadies Beige Leather CH Ristobal Cowboy Boots Sz:6.5 M (Z) , Womens summer pointy toe 12cm high heel fashion shoes T show pumps stilettos , Sam Edelman Darrah Combat Boots Black With Grey Top NWOT Women’s 9.5Ladies Fly London Myso Low Wedge Heel Riding Buckle Winter Ankle Boots All SizesSTEVE MADDEN Womens Black Leather Open Toe Ankle Booties Sz 10
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Nike Cortez Kenny III DS III Size Red 11.5 Black White Gym Red BV0833 016 Kendrick Lamar DS 37fb9cd - 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 Cortez Kenny III DS III Size Red 11.5 Black White Gym Red BV0833 016 Kendrick Lamar DS 37fb9cd - 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 Cortez Kenny III DS III Size Red 11.5 Black White Gym Red BV0833 016 Kendrick Lamar DS 37fb9cd
    Athletic Shoes
    >
    ;