Never miss an update

Wholesale Lot 18 Pairs Pairs Men's Comfortable Sport Sandals Wholesale Assorted 18 1601 ead9e6d




Never miss an update

Wholesale Lot 18 Pairs Pairs Men's Comfortable Sport Sandals Wholesale Assorted 18 1601 ead9e6d - blurrypron.com

    Wholesale Lot 18 Pairs Pairs Men's Comfortable Sport Sandals Wholesale Assorted 18 1601 ead9e6d
    Wholesale Lot 18 Pairs Pairs Men's Comfortable Sport Sandals Wholesale Assorted 18 1601 ead9e6d
    Men/Women Y'S Mouton bore sandals WHT 4 Special price excellent As of the latest model , MENS OLUKAI MANOA DK SHADOW / TOFFEE 10331-6C33 MENS 12 , Wholesale Lot 36 Pairs Men's Sandals Comfortable Beach Sport Assorted 1854 , Jordan Hydro 3 III Retro Mens 854556-116 White Fire Red Cement Sandals Size 15 , Sandal Boyz Rose Pink Suede Sandals sz 6 Supreme 5.5 SandalBoyz wmns 7.5 , JUTTA NEUMANN Men's Shoes 351448 Brown 10 , Birkenstock Boston Smooth Leather Unisex Clogs slippers footbed mules - NEWBirkenstock Arizona Velours Leather Unisex Shoes Slides Sandals , Birkenstock Zürich Nubuck leather Soft-Footbed Steer unisex Slides slipper - NEW , ISLAND SLIPPER Men's Shoes 701175 Black 10NIKE AIR MAX 2017(not 2018) Men's Running Trainers Shoes Sneakers Movement , Man/Woman TRIPPEN Wood & Leather sabot sandals High quality and cheap Trendy Outstanding style , F.lii.Giacometti Men's Shoes 282896 Brown 39 1/2 , AE231 MOMA shoes brown leather men sandals , SHAKA Men's Shoes 994035 Black 26cm , Emporio Armani Slippers Shoes Sz. 43 ITALY Man Blue X4P079XL293-A046 MAKE OFFER , Emporio Armani Slippers Shoes Sz. 42 ITALY Man Blue X4P079XL293-A044 MAKE OFFER , Brioni Grained Leather Boat Shoe, 7 UkSummer Rome Sandals Genuine Leather Casual Shoes For Man Outdoor Cowhide WearMen's Spenco Siesta Chukka Boots Sandals Expresso SKU , NEW~Adidas JEREMY SCOTT HIKING BOOT JS obyo ALLIGATOR superstar Shoes~Mens sz 122018 Men Real Leather Gladiator Roman Hollow out High top Motorcycle Sandals Wi , S-1047968 New Salvatore Ferragamo Gym Dark Ivy Rubber Sandal Shoes Size US-7Teva Terra Fi 4 Madang Olive Webbing Mens Sport Sandals Size 12M , Wholesale lot Men's sandals 36 pairs sizes 7-10 / 7-13 SB5704TRIPPEN Wood & Leather Sabo sandals dark brown 24.5 , Men sandals leather model ZAID Us 2 to 12 , Aldo Men's Welawien Flip-Flop - Choose SZ/colorJ-2417270 New Valentino Garavani Blue Stripe Sandals Shoes Size 42 US 9 ,
    Wholesale Lot 18 Pairs Pairs Men's Comfortable Sport Sandals Wholesale Assorted 18 1601 ead9e6d - blurrypron.com>Wholesale Lot 18 Pairs Pairs Men's Comfortable Sport Sandals Wholesale Assorted 18 1601 ead9e6d - blurrypron.com
    Karl Lagerfeld Paris Womens Chance Navy Over-The-Knee Boots 9 Medium (B,M) 6812Frye Cara Tall Women style 3478326 wood size 8.5 NEW IN BOXMen/Women Adidas Gazelle Collegiate Navy BB5478 Sneakers online sale Order welcome Excellent workmanship , Burberry Cross Hill Check Rain Boots Brand New Size 40 Size 9NEW Wide Steps Charity Black Leather Sandals Womens Shoes Wide Fit C+ Fit , Womens Breathable Punk Retro PU Leather Open Toe Sandals Zip Gladiator Roma BootJambu Women's Bailey Maryjane Flat Taupe 7.5 M USwomen's wedding formal rhinestone pointy toe ankle strap slim bridal shoes pumps , Hades Footwear LORREIN MONARCH NEMO NEO NOCTURNE SCARLET SHADE SIDHE HeelsNIB Christian Louboutin Lagoa 120 Leather White Black Rope Wedge Shoe 41 $795 , NEW $120 size 8 Ivanka Trump Hopela Red Leather Strappy Platform Wedge SandalsBadgley Mischka Women's Waren Flat Sandal - Choose SZ/Color , Easy Spirit Aida Mule Sneakers, Taupe, 8 US / 38.5 EU , Nike Kwazi SE Basketball Mens Shoe US 13 861687301PUMA Mens 365 Netfit CT Soccer-Shoes- Pick SZ/Color.ASICS GEL-Exalt 4 Black - Mens - Size 11.5 D , New Balance Men's Low-Cut Metal 406 Shoes Black with SilverMan/Woman lebron zoom soldier 2 Moderate price Highly praised and appreciated by the consumer audience SimpleNES Mens Sneaker “Just do it ”Air Force 1 Low , Nike Free Hypervenom Mid Villain Red SZ 13 DS , BAIT x Diadora N9000 Spiaggia Rosa Men sz 11 Beach Runner II Supreme SNS , Skechers for Work Men's Blais Steel-Toe Hiking Shoe2011 Nike Air Jordan 3 III Retro OG SZ 9 Black Cement Grey Fire Red 136064-010 , Man/Woman adidas Performance Men's GSG-9.4 Tactical Boot Diverse new design Optimal price Direct business , Gentlemen/Ladies Y-3 Kaiwa RARE Moderate price The latest technology Popular recommendation , Armani Jeans Men's trainers fashion sneakers Black Size 6.5 7.5 8 9 9.5 10.5 , adidas Originals Womens Tubular Shadow w Fashion Sneaker- Pick SZ/Color. , ADIDAS PURE BOOST X Womens Size BB4969 White 9, 41 1/3 EUR , Vibram Men's Furoshiki Olive Sneaker - Choose SZ/ColorWomen's Ella Moss Victoria 3" Heel Almond Toe Ankle Boots in Tapestry Print 7M ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Wholesale Lot 18 Pairs Pairs Men's Comfortable Sport Sandals Wholesale Assorted 18 1601 ead9e6d - 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.

    Wholesale Lot 18 Pairs Pairs Men's Comfortable Sport Sandals Wholesale Assorted 18 1601 ead9e6d - 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
    Wholesale Lot 18 Pairs Pairs Men's Comfortable Sport Sandals Wholesale Assorted 18 1601 ead9e6d
    Sandals
    >
    ;