Never miss an update

Nike Air Max 90 Premium Nike Mens (700155-402) mogochinese-29458 Obsidian Denim 90 Size US 8.5 100f649




Item specifics

Condition:
: An item that has been previously. See the seller’s listing for full details and description of ... Read moreabout the condition
Brand: Nike
Size: 8.5 Material: Denim
Never miss an update

Nike Air Max 90 Premium Nike Mens (700155-402) mogochinese-29458 Obsidian Denim 90 Size US 8.5 100f649 - blurrypron.com

    Nike Air Max 90 Premium Nike Mens (700155-402) mogochinese-29458 Obsidian Denim 90 Size US 8.5 100f649
    Nike Air Max 90 Premium Nike Mens (700155-402) mogochinese-29458 Obsidian Denim 90 Size US 8.5 100f649
    Adidas X Alexander Wang/Reissue Run Sneakers/UK11 /Brand new in box /Sold out! , Nike Air Jordan XI 11 Retro 2008 CDP COUNTDOWN BRED BLACK RED Size US 6.5Man's/Woman's Adidas Ultra Boost 1.0 Complete specification range Beautiful List of explosionsNIKE AIR JORDAN V (5) RETRO 
PREMIUM 881432 003
 size 8 Srp $570Nike Air Max 90 - brand new US11 washed denimNEW BALANCE Classics Traditionnels Black Gold size 10 DS CM1600AG , Adidas Jake 2.0 Boots Mens Unisex Footwear Trainer Skate NewAir Jordan 6 Retro Black on Black US10/UK9 Mint BNIB 100% authenticAir Jordan Just Don Legacy 312 White Navy Ginger Size 9.5 , Brand New Nike VaporMax Plus US9.5 Sunset/OrangeNike Vapor Street Flyknit - Olive US10Men's/Women's Nike Air Zoom Spiridon 16 OG Many styles online shop Different goods , Nike New Authentic Rare Men’s Air Max Plus Tn Shoes Size US 10.5 , Man's/Woman's Air Jordan 8 Aqua US9.5 elegant Comfortable touch At an affordable priceNike ACR Acronym AF1 Lunar Force One Us10.5 Presto LunarAir Jordan Just Don Legacy 312 White Black Volt Size 10 , Adidas Ultraboost 3.0 "Black Silver" Triple Black Running Shoes (BA8923) - US 10Air Jordan 11 (XI) 72-10 Retro US13Man's/Woman's air jordan retro 4 Ds Strong heat and wear resistance Elegant style Various latest designsMan/Woman Brooks - Glycerin 15 - Pink/Purple/Silver Moderate price discount Rich on-time delivery , Mr/Ms Yeezy 350 V2 Triple White US11 New product Online export store fine , Brand New Adidas Consortium x Juice NMD Racer Size US 10.5 Mens BNIB Boost , Lowa San Francisco GORE-TEX lo Anthracite | Mustard , Air Jordan 12 Retro Flu Game 20162017 Jordan Retro 5 White Cement DS , Lowa San Francisco GORE-TEX lo Dark BrownNike React Element 55 Black Solar Red US9 BQ6166-002 , US10 Adidas x Haven Ultra Boost Uncaged Triple Black (BY2638) 5% code: P5OFFMan/Woman Adidas NMD R1 Japan Triple Black sell buy Fine wild
    Nike Air Max 90 Premium Nike Mens (700155-402) mogochinese-29458 Obsidian Denim 90 Size US 8.5 100f649 - blurrypron.com>Nike Air Max 90 Premium Nike Mens (700155-402) mogochinese-29458 Obsidian Denim 90 Size US 8.5 100f649 - blurrypron.com
    Gentlemen/Ladies Women Shoes Size 40 Easy to use Win highly appreciated Direct business , Easy Street Women's Devo Ankle Bootie Black/Crocodile 8 2W USBlue And White Printed Womens Rhinestone Flat Heels Elegant Shoes Hot Size 4.5-8 , Women ladies fashion night club sexy pumps crystal dress shoes sandals size W943Vogue Womens Candy Color Rivet Pumps Faux Leather Pointy Toe High Heels Shoes SZLadies Clarks Wedge Heels With Belt Detail Flores Poppy , Gentlemen/Ladies Uterque Women Raffia slides 5184/351/002 Not so expensive Skilled manufacturing Speed ​​refund4.3 " Visuel Moniteur Porte Judas Piaulement Trou PIR Sans Fil Téléspectateur Ca , CW34 New Chaco Z Volv 2 Sandal Trail River Beach Casual Water Women 7 PeachTaryn Rose Womens danielle lux Leather Low Top Slip On Fashion Sneakers , NIKE SB ZOOM BLAZER LOW LEMON WASH/SUMMIT WHITE SIZE 8,9,9.5,10,10.5,11,12,13 , Men’s Nike Zoom All Court Skateboarding Snealers Shoes - Size 10 , $99 NIB Men's New Balance 530 90's Leather Retro M530LGB Shoes 311 999 BlackNike Air Max 1 SE Satin Pack Mens AO1021-001 Black White Running Shoes Size 8 , Men And Women'S Waterproof Snow Boot Drawstring Cold Weather BootClarks Originals Men's Desert London Midnight Suede Casual Oxfords 26122624 , ASTON GREY COLLECTION Boyle Black Leather Wingtip Oxford Shoes Men's Size 11 EUCALBERTO GUARDIANI MAN SNEAKER SHOES CASUAL FREE TIME CODE SU66351EBostonian Aland Bailey Black Slip-On Wingtip Tassel Leather Loafer Duralite 9 Wigi&co Focus Vitello Nero oxfords sale 86700Casual Fridays Men's All Leather dress loafer boat shoes Sz 8 1/2 M tassel , ASICS Gel - Kayano 23 Women's Running Shoes (Size 6) Blue T696N 4393 , Calvin Klein Women's Tea CK Logo Pearl White Sneakers Size 8Oboz Women's Bridger Mid BDry Hiking Boot Rio Red Slip-Resistant (Non-Skid)Nike Womens Iridescent MultiCOLOR Rainbow Gay Pride BeTrue Shoes Cortez 6 7 8 9shop_uk Womens Round Toe Wedge Heel side zip Over The Knee Thigh High Boot ShoesWomen Knee High Boots Buckle Ankle Strap Round Toe Low Block Heels Side Zipper , Punk Lolita baby doll 11-Hole Bow Stud Heel Boots 10/10.5 BLK 43 2068 , Sanuk Women's Cush N' Blaze Chukka Boot - Choose SZ/ColorWomens Aquatalia by Marvin K. Sweet Shoes Black Leather Moto Boots Sz 5.5 M $450
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Nike Air Max 90 Premium Nike Mens (700155-402) mogochinese-29458 Obsidian Denim 90 Size US 8.5 100f649 - 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 Max 90 Premium Nike Mens (700155-402) mogochinese-29458 Obsidian Denim 90 Size US 8.5 100f649 - 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 Max 90 Premium Nike Mens (700155-402) mogochinese-29458 Obsidian Denim 90 Size US 8.5 100f649
    Athletic Shoes
    >
    ;